Most mid-market companies think FX hedging is for the big guys. It's not—and that assumption is quietly eroding margins. If your company invoices in USD but pays suppliers in EUR, GBP, or CAD, you already have FX exposure. The question isn't whether to manage it. It's whether you're doing it deliberately or by accident.
Three things every finance team can do right now
- Map your natural hedges first. If you have matching inflows and outflows in the same currency, your net exposure is smaller than you think. Don't hedge what's already covered.
- Use forward contracts for known payables. If you're paying €400K in 90 days, a forward locks in today's rate and eliminates the guesswork. Your bank will price it—just ask.
- Write down a hedge ratio. Most mid-market treasuries target 50–75% of forecasted exposure out 3–6 months. Pick a number, document it, and be consistent.
FX risk is a planning problem, not an exotic one
FX risk isn't exotic—it's a planning problem dressed up in financial jargon. The tools are accessible, your bank already offers them, and a written policy turns reactive guesswork into a repeatable discipline.
Are you actively managing FX exposure—or just hoping the rate cooperates? CurvedSpace can help you map exposure and put a simple, consistent hedging policy in place.