Any company conducting a business in foreign currencies, is exposed to exchange risk. From the moment a company concludes a contract in foreign currencies, the contract amount has an impact on the commercial position of the company.
This is the reason why this company must know its risk exposure and the hedging of this risk through hedging transactions (i.e. FX Transactions).
The module provides two analysis tools:
- the FX Position Worksheet
- the consolidated results on open positions.
In addition, various ledgers enable you to assess the risks and committments of your company:
- the FX Transactions Ledger
- the Currency Borrowings/Loans Ledger
- the Commercial Transactions Ledger
- the General Ledger.
This topic presents detailed explanations on all the report and ledger types available in FX. These reports enable the analysis of the exchange risk to which your company may be exposed, and the choice of the hedging strategies to set up in order to manage this risk properly.
For more information on the documents edited from the management pages for FX Transactions (dealing tickets, payment orders and confirmation letters) see topic Transaction-related Documents.
