Managing foreign exchange (FX) risk has become a major theme in the current market environment.
YEREVAN, October 21, /ARKA/. Managing foreign exchange (FX) risk has become a major theme in the current market environment. This renewed focus on FX can be explained by the significant increase in FX volatility, and is of special attention to those specializing in goods and services cross-border trade.
When a business is involved in international trade – whether as an importer or exporter – understanding how to protect from exchange rate risk and how to trade in foreign currency can be daunting.
With the benefits international trade has in offer, at the same time, getting comfortable with foreign exchange or FX lets a business maximise new opportunities.
Today "HSBC Bank Armenia" CJSC (hereinafter HSBC Armenia or the Bank) brought together a cohort of local corporates for a discussion on FX risk hedging peculiarities and respective instruments the Bank has in offer.
Trading overseas in different currencies does increase business risk. The size of the risk will vary, depending on the currency involved, the transaction value, the time horizon for making or receiving payment looks like, and the prevailing market conditions.
However, there are solutions available to help the customers understand and reduce the risk, and HSBC delivers them seamlessly, reducing the time and effort the customers need to trade internationally.
“The right solution will depend on the circumstances of your business and the nature of the transaction,” says Ruben Melkonyan, Head of Markets & Securities Services Armenia “but understanding what options are available can help the decision-making process. Even if you decide to do nothing, it should be an informed decision.”
“Movements in currency can eat into profit margin and even cause a loss, if businesses ignore that risk, either because they don’t understand it or because they think it’s too time-consuming to address,” says Irina Seylanyan, HSBC Armenia CEO.
To learn about services provided by HSBC Armenia please visit www.hsbc.am website or contact us at +374 60 655 000.
HSBC Holdings plc
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 63 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,985bn at 30 June 2022, HSBC is one of the world’s largest banking and financial services organisations.
HSBC in Armenia
HSBC Bank Armenia CJSC was established in 1996. The bank is a wholly owned subsidiary of HSBC Group. HSBC Armenia serves around 30 000 customers through seven offices located in Yerevan and around 310 employees. As of 31 December 2021, the Bank has assets of AMD261 billion including the ones, allocated with the mediation of the HSBC Bank plc, London. The bank is regulated by the Central Bank of Armenia. -0-
