Businesses urged to consider how they manage currency risk

AS the Brexit debate continues to dominate the headlines, Irish businesses with an exposure to non-euro currency, should be seriously considering how they are managing their currency risk and look to minimise their exposure to sudden and large currency moves expected in the months ahead. SPEAKING about the latest sterling currency updates, Lee Evans, Head of FX Trading at Bank of Ireland, commented; “The Pound is currently undervalued due to the Brexit vote but as we approach the March deadline, any ‘Pound-positive’ outcome could see a notable rally in Sterling as it regains some of its lost value. “SIMILARLY, there are still risks to a disorderly Brexit which would see substantial moves on the currency markets.”

THE team at Bank of Ireland Global Markets are helping customers across Sligo navigate and thrive during these times of heightened uncertainty.

If your business has a material exposure to a non-euro currency, don’t gamble with your bottom line. Talk to your local Bank of Ireland regional treasury manager about your hedging strategy and they will work with you to identify, understand and manage your treasury requirements.

Businesses can also avail of a number of other supports from Bank of Ireland to help navigate international markets including; market and economic updates, resources on the dedicated online Brexit Portal, trade finance and FXPay, our online international payments platform.

Niall Sinnott, Regional Treasury Manager for Connacht & Ulster added: “Due to unprecedented demand and to further support businesses getting Brexit ready, we have also increased our unsecured FX facility to €50 million.

“This makes it simpler for your business to fix your foreign exchange exposure at competitive market rates on the day you agree a contract with a customer or supplier, giving certainty on cash flow and profit margin”.

If you would like support in preparing your business for Brexit, get in touch with your local Bank of Ireland regional treasury manager or your usual Bank of Ireland Business Adviser.

You can also visit bankofireland.com/Brexit for more information on the Bank’s business lending and currency risk management services.

Niall Sinnott is Regional Treasury Manager for Connacht & Ulster at Bank of Ireland and can be contacted at 086 384 7030 & Niall.Sinnott@boi.com