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Innovative Approaches to FX Risk Management

As a mid-cap company operating globally, HMY Group faced the liquidity and risk challenges typically more familiar to large multinationals, but without the same scale or leverage with their banks.

In this article, Ignacio Sanchez, Treasury & Risk Manager, describes how HMY Group has addressed the challenge of managing FX exposures, whilst minimising utilisation of bank credit lines.

Key Points

  • HMY group decided to embark on a new approach to cash management, prompted largely by its acquisition in 2011 of a business in China
  • It needed to find a way to free up credit lines with its banks while ensuing an effective FX hedging strategy
  • After looking at various alternatives the group decided to work with Kantox, which provides a peer-to-peer FX trading platform for companies of up to €1bn revenue
  • This relationship has proved highly sucessful, allowing the group to achieve competitive pricing and freeing up bank credit lines

 

Written by

Ignacio Sanchez
Treasury & Risk Manager
HMY Group

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