Company XYZ Pty Ltd has been importing goods from offshore for sometime. They have noticed in the last 12 months how much volatility there has been in the cost of these goods and seen the impact it is having to their bottom line. They are able to pass on some of the cost increases but are not able to keep up with the fluctuations in the currency.
XYZ can engage in a hedging structure that is able to smooth out its cashflows and protect it from adverse movements in the currency. Designing and implementing a hedging policy is paramount to achieving this long term stability and certainty in the cashflows of the company.
There are many hedging products and solutions that can be implemented as part of the hedging policy. Some of these provide a known fixed conversion price and other allow participation in more favourable rates. XYZ, with assistance from TAURUS, will be able to implement the strategy that is most appropriate based on the current market conditions.
TAURUS is able to assist with all the above needs and ongoing managment and support of the the hedging policy and strategies.
