Free Pricing | JCPenney Coupons | Pizza Hut Coupons | Home Depot Coupons
Boosting Overseas Revenues Through Foreign Exchange

Boosting Overseas Revenues Through Foreign Exchange

by Rick Turoczy on September 13, 2004

The move toward point-of-sale currency conversion isn’t the only change afoot in the fx realm. Public companies’ fx management strategies are shifting in response to the Sarbanes-Oxley Act. Before the passage of the act, companies were required to report only the total number of their foreign transactions along with their average cost. Now, however, businesses must provide detailed information for each transaction, including the original value in local currency. As a result, many organizations are moving toward centralized foreign exchange operations and in-house hedging.

“You can’t manage what you don’t know,” says RenĂ©e McKenzie, senior vice president and practice leader in the Atlanta offices of Wachovia Treasury & Financial Consulting. “Centralization provides a good global picture of where the money is and enables companies to figure out how they can pay themselves and reduce exposure, which leads to netting arrangements. All foreign offices let corporate headquarters know what their payments and receivables are, and corporate will net out and say, ‘Hey, you owe this much in this currency.’ That way you don’t have all external hedges with everyone doing a one-off.”

Boosting Overseas Revenues Through Foreign Exchange

Leave a Comment

Previous post:

Next post: