Hedging Currency Risk with Seagull Options for a New Zealand Scrap Metal Exporter
Background A New Zealand-based exporter specializes in scrap metal shipments to the Philippines. Anticipating receipts of USD 3,000,000.00 over the next 4 months, the current cost rate is set at 0.6100. However, the exporter remains open to renegotiating pricing terms if the NZD/USD exchange rate surpasses 0.6300. Conversely, concerns arise regarding potential depreciation of the […]
Currency Risk Management for a New Zealand Timber Exporter Expanding to China and Singapore
A New Zealand-based exporter operates in the timber log trading industry, serving markets in China and Singapore. Operating on a narrow margin of 5% due to the volatile nature of the commodity market, the monthly export volume amounts to USD 8,000,000.00, with a total FX volume for the year totaling USD 96 million.
Currency Risk Management for a New Zealand Importer of Exotic Fruits from South-East Asia
A New Zealand importer specializes in the seasonal business of importing exotic fruits from South-East Asia and India. Anticipating invoices totaling USD 2,500,000 for fruit imports from South-East Asia in 6 months’ time, the current favorable NZD to USD exchange rate of 0.6500 poses a dilemma. There’s a concern that the NZD might weaken against the USD, potentially increasing the cost of imports.
Currency Risk Management for a New Zealand Resident Relocating to Australia
A consumer client is relocating from New Zealand to Australia and expects to receive NZD 1 million from the sale of their house in three months. The current NZD to AUD exchange rate is 0.9500, which is favorable for converting their funds into AUD.
How Corporate Alliance FX (CAFX) manage your Foreign Exchange risk
Please Click and Read Attached PDF Document “Case Study“
