1. Why would a currency expert be better than the banks or exchange companies?
Banks are good at what they do. They put out reams of research and data. If you like reading research papers and trying to formulate opinions, enjoy. We often find companies are just looking through research until finding opinions that agree with theirs so they can be empowered to act. This is a mistake, we think you can get much more valuable input that is pertinent to your company.
How much could your company benefit by having a top ranked currency expert as part of your team?
2. We are happy with our current banking relationship
Great, continue using them to execute your trades. However, our expertise can improve your execution levels and increase your profit margins. We can also customize strategies to your company financial goals and targets. We can also make sure that your bank is giving you a fair price for your exchange rates. Why not be even happier?
3. How can your experts or anyone accurately forecast currency prices?
Though it is impossible to be correct all the time, you can greatly improve your profit margins by taking action at better rates each time you make a conversion and hedging more of your risk at far better rates. Our currency experts have a finger on the pulse of the market and can pinpoint key levels to take action and have a valuable perspective on current market direction. This is what Castle Currency excels at and how we add the most value to our clients. We don’t try to forecast where the currency will be 6 or 12 months from now (we don’t have a crystal ball), we analyze the current trends and watch for key areas where it might stop and turn around. We determine what rate is best to place your forwards out 6 to 12 months.
4. The currency has already moved against us, what can we do now anyway?
Currency never moves only in one direction. There are opportunities throughout the year to capture beneficial moves, sometimes only lasting very short periods of time. Clients have to be prepared to take opportunities when they arise, not look back and wish they should have.
5. Doesn’t placing forward hedges only delay the inevitable?
This is not correct. A company, for example, that hedges forward 12 months allows itself the flexibility to extend its protection anytime throughout the upcoming 12 months. Companies that rely on exchanging funds as needed are taking the price available at the time, regardless of how poor it may be. It is true that prolonged major trends will eventually catch up to all companies, though companies hedging their exposure forward will have much more time to adjust to any new price levels and may not have to suffer so long at undesirable rates.
6. Why would our company need a defined currency strategy?
Currency, more than any other item, can affect the profitability of the company.
Though anyone is capable of making trades, improving the execution price directly increases your profit. Valuable advice from a currency expert can add 10% or more directly to your bottom line.
7. Isn’t placing a hedge speculating?
Only if you are unsure if you will receive or need those funds. However, by doing nothing when you do have risk you are speculating or hoping that the currency will not cause your business any harm.
8. We have a financial team, why wouldn’t we manage our currency risk ourselves?
Upper management often expects their financial team to be an expert at managing the company currency risk; this is part of the problem.
The financial team should be very capable at determining your currency risk and knowing how to take measures to protect against it. They should know that better for your company than anyone else. However, this does not mean that they have the experience or skill set to constantly analyze the currency market and improve company profit margins.
Is it likely that someone watching currency part-time and having other very significant responsibilities can analyze the market as well as an experienced currency expert? Is that really the goal? Shouldn’t the goal be to ensure that the risk the company has is understood and strategies implemented meet the expectations and improve outcomes?
• Could your financial team quit their job and become successful currency experts?
• It is often difficult for financial teams to develop strategies then confidently execute them
• Second-guessing actions often leads to knee-jerk reactions and poor decision making
• It is difficult for financial teams to focus on currency when many other tasks are also of great importance to them. Currency unfortunately often takes a backseat at the wrong times.
• Ambiguous advice leads to hesitation and inaction
• Financial teams often have concern of making wrong decision – how does it look to the upper management when they have taken action when doing nothing would have been better. This underscores the importance of having defined strategies and having upper management understanding them
• Some financial teams believe they can be better than a currency expert on making hedge timing decisions
• Our expertise and entire focus is on the currency markets and quite frankly we are the best in the industry. However, we certainly would not be a good fit for such a company.
9. What Sets Castle Currency apart?
Our currency experts are top in the field.
• Jeff Boyko is an extremely talented currency expert firstly gaining his experience with one of the top ranked currency traders in the world. He has since become a leading currency expert and risk manager.
• Peter Panholzer is one of the very first currency traders beginning his career over 36 years ago. He is one of the top ranked currency traders in the world.
Our expertise is highly regarded and sought after, speaking at conferences and putting on currency seminars such as:
• FX Invest North America and FX Invest Europe – global conferences for currency experts and investors
• Professional Risk Managers International Association – speaking engagements on managing corporate currency risk
• Appeared numerous times in e-Forex magazine – the number one magazine related to currency trading and exchange
Castle Currency management team has unsurpassed experience in currency management and conversions. The market is very fluid and changes quickly, especially nowadays. We analyze currencies continuously to develop, revise, and execute our strategies as situations change. We will take all measures to keep our approach simple and effective.
10. What can Castle Currency Management provide?
Currency based strategies or Company Specific strategies
Defined strategies that leave no room for second-guessing.
Strategies that keep your company proactive, focused, and improve your profit margins.
Currency Management Plans
A detailed Currency Management Plan that encompasses the entire process of currency risk management and provides continuity that essentially enables the company to remain in control of managing risk should the need arise. This is not merely a currency policy statement, but an in-depth document typically 20 to 30 pages in length accepted by upper management and covering items that include:
• Best and Worst Case Scenarios
• Sensitivity analysis/Stress Testing
• Performance Measures/Benchmarks
• Fiscal Framework
• Defined Strategies
• Risk Sharing/Transfer
• The Amount at risk
• Trading Responsibility
• Trading restrictions
• Ensuring competitive rates
• Marking to Market
• Train your staff in currency execution and responsibilities
• Conduct risk management analysis
• Provide Sensitivity analysis and stress testing
• Provide currency insight for budget preparations
• Ensure proper reporting procedures
• Conduct risk audits to identify any weaknesses
• Develop and Implement a centralized forex desk
• Develop benchmarks to measure effectiveness
11. How much does Castle Currency Charge?
Our goal is to provide an excellent service at a fair price
Contact us for information on our fees.
"Denial is common tactic..."
A Solid block, do not think a image would work here.
Business Risks Companies Face
"What types of risks can currency movements cause to a business?"
Currency Movement Risks
"What different types of currency movements should I be concerned of?"
"You may already have strategies to manage your risk, see why Castle Currency provides effective strategies which can add to your existing ones"
Conversions - Best Rate
"you can capture a significant amount of money by improving the rate you get for conversion – let us help"
"It is important that you are managing the proper risk amount. We can help ensure it is neither too much nor too little"
"Do you know what effect a significant currency move would have on your bottom line? We will show you then help you do something about it"
"Have a third-party review your internal operations, it removes potential conflict and provides objectivity"
Currency Risk Management Plan
"Could you benefit from a Currency Risk Management Plan?"
Centralized Foreign Exchange
"Do you have one division buying USD at the same time another is selling?"
"Could your team benefit from more knowledge of currency risks and how to mitigate them. We would love to show them how"
Budgeting Currency to Margins
"Does it not makes sense to customize your currency risk management strategies to meet your margin expectations and limitations?" We strongly believe it does "
Fully Managed Services
"We watch the currency markets 24 hours a day – why not focus your time on your core business?"
"How can you be sure you are effectively managing your risk?"
"Do you know what your risk is at any given time? Shouldn't you?"
"Hire professionals who are experts at managing currency risk. Be aware of the difference between one who takes orders and conducts trades compared to one who analyzes not only the market but your specific business.
What is the worst-case scenario for your company right now?
"Denial is a common tactic that substitutes deliberate ignorance for thoughtful planning."
Currency Risk Management Plan
Developing an effective Risk Management Plan is an important part of any project
© Copyright 2002 - 2016 Castle Currency Management Inc. All Rights Reserved.