Brexit impact on Foreign Exchange | An insight from Walpole Partner Global Reach Partners

With Brexit at the top of every business agenda – and remaining there for the foreseeable future – Walpole is hosting a series of insight events dedicated to protecting the interests of the luxury industry during negotiations. Our latest event, Navigating Brexit, featured a number of speakers, including experts from foreign exchange specialists Global Reach who discussed the impact of Brexit on currencies.

As far as FX is concerned, until the negotiations are completed, we anticipate further volatility for GBP which will largely be driven by news on Brexit.

With the market volatility Brexit brings, it is important to have an effective FX strategy in place for your business. As discussed during the event, there is no off-the-shelf, one-size-fits all FX strategy for businesses. Instead, we work with our clients to develop a bespoke strategy around what we refer to as the four pillars of effective FX management.

This starts with having a solid understanding of your business requirements and FX objectives. It is essential to analyse where the FX risks are likely to exist over the short, medium and long term.

The next step is to determine the most effective strategy and appropriate products you can use to reduce risk for your business. This could include using FX Spot, Forwards or Options products to help minimise risk.

Then a business needs to decide on a strategy, this depends on firm’s attitude to risk and their view on the markets.

Finally, it is time to execute the strategy which should be constantly monitored.

Global Reach have just completed their latest Quarterly Review for the Major Currencies which can be read by clicking here: Global Reach Partners Report.

If you would like to find out more about managing currency exposure, please contact John Mullens on JMullens@globalreach-partners.com or visit Global Reach Partners.