Episode Details

In this episode, Craig Jeffery speaks with David Pierce of FinSavvy about how treasury teams should understand and manage foreign exchange exposure. They explain different types of exposures, including balance sheet, forecast, and economic, and why each requires a different approach to hedging. The discussion emphasizes that hedging is risk management, not speculation, and explores how factors like interest rate differentials, margins, and time horizons impact decisions. They also highlight hidden risks such as intercompany exposures and the importance of aligning treasury and accounting to avoid unintended impacts on financial reporting.