Currency Hedging Is Back in the Front Office

Currency hedging is moving back into the front office for importers and exporters. In volatile trade conditions, foreign-exchange risk is not only a finance department issue. It can decide whether a contract is profitable.

Why the conversation changed

Businesses that quote in one currency, buy in another and pay suppliers on delayed terms are exposed to margin shifts they may not control. Hedging does not remove risk completely, but it can make the risk visible before a contract is signed.

The practical change is cultural. Sales, procurement and finance need to discuss currency assumptions together. Otherwise a good commercial deal can become a weak financial outcome.

The disciplined approach

The best hedging policy is not speculation. It is a rulebook for when to lock exposure, when to leave flexibility and who has authority to approve exceptions.