FX Fixes

A strong dollar makes goods sold by U.S.-based companies more expensive and potentially leads to decreased demand for exports. Combined with lingering uncertainty about global markets and geopolitical activity, many businesses are leery about international expansion.

An international banking expert like FNB can design a foreign exchange (Fx) strategy to mitigate any specific risk your business may face. This could include one of three common approaches.

A natural hedge, reduces your Fx exposure by netting your payables and receivables in the currency of the buyer

Let the buyer pay you in their currency, makes it easier and more affordable for them to do business with you, and hopefully encourage more sales.

Conduct transactions in a currency that is available to the buyer, takes advantage of favorable exchange rates while, again, making it easier for the buyer to pay.

With the right strategy in place, leveraging a strong U.S. dollar can increase international sales or to purchase goods, equipment or property in a market where the dollar has increased buying power - and as the competition may be holding back.