I would be a rich man if I had a Rupee for every time I have heard the phrase "Forex is not my business" from corporates with forex exposures. If your company exports or imports anything, then forex is your business. You could be exporting software, soya meal or pharmaceuticals. You could be importing coal, oilseeds, machines or chemicals. You could be importing rough diamonds and exporting polished diamonds. In all cases, forex IS your business. Unless you are a cash rich company, you would be taking loans from banks. You are not a banker, yet you constantly look for ways to reduce your borrowing costs. It is not in the education business. Yet, it conducts training for hundreds of technical kshitij it hires every year, as a part of its normal activities. The venerable Godrej Group has entered the residential real estate business only recently. Yet, it has been providing housing to its employees at Vikhroli in Mumbai for a very long time. There are only a handful of power generation companies in India. Yet, many large manufacturers in India run captive power plants. The point is any variable that critically impacts your business, is your business. You may not like it, you may feel it is an imposition on you; you may even want to outsource the function to an external service provider. Security kshitij very much a part of its business. Your exposure is your position in the forex market. As an Exporter, you are to receive Dollars in the future and are therefore Long on the Dollar. Similarly, as an Importer you have a liability to pay Dollars in the future. So, you have a Short Dollar position in the forex market. Agreed, trying to make money from forex trading repeat, from forex trading is not what you should be doing. But, it is a fact that your exports and imports have saddled you with a forex position. Even the RBI encourages corporates to manage their forex risk. Shri Forex Padmanabhan, Executive Director, Reserve Bank of Kshitij, has said in a speech "Managing currency risk in the new normal" on July, that "The hedging activities of the corporates should be an integral part of their overall risk management policy and mechanism. Saying "forex is not my business" kshitij a defeatist attitude. It is not going to make for success in forex risk management. Indians are acknowledged as good managers worldwide. Can they not succeed at forex hedging? Of course, they can. There are some very good forex risk managers in some of the companies we forex met. They know how to do the job well. Why then do so many companies report large forex losses? It is because there is a lack of clarity on the key issues regarding forex risk management and hence a lack of commitment to it at the highest levels. I myself will lose interest in an endeavour if I find that nothing tends to work on an ongoing basis in the long run. I try this, I try that, but nothing seems to work. That is why, my last article highlighted the " Drawbacks of Common Hedging Methods ". So, what is the way out? If you recognize that forex risk management is an essential part of the company's business and you commit yourself to it by sanctioning a hedge cost budgetyou will be well on your way to hedging success. You can do it. Or ask us how to do it. Give us a call. We'll be glad to help. Chief Currency Strategist at KSHITIJ. Likes to look at the markets from many different angles. Weaves many conventional and unconventional technical analysis techniques and fundamental analysis into a global macro perspective. Likes to take the road less traveled. SHRI MURLI SARAF Shyam Group of Companies Bengaluru. Kshitij is the only advisor that has taken a firm stand on the market at various kshitij and at the same time they have always been willing to accept their mistakes gracefully. Kshitij 15Jun17 USDJPY Broken out of triangle. Could reach in June itself https: Kshitij 13Jun17, EURUSD 1. First big break above mth MA in last two mths, since 1. Immediate support beingGold could head towards major resistance near Kshitij Caution time for Euro as it shows great upside momentum but the resistance cluster overhe Premium Services Daily Forecasts Longterm Forecasts Hedging Advisory Free Services Graph Gallery Economic Calender Morning Briefing Colour of Money Currency Data Testimonials Contact Us Login. Home Home Free Services Colour of Money Forex Risk Forex Follow kshitij! YOUR BOSS NEEDS TO SEE THIS I would be a rich man if I had a Rupee for every time I have heard the phrase "Forex is not my business" from corporates with forex exposures. Anything that impacts your business is your business. Similarly, if you are into exports or imports, forex is very much your business. An Exporter is Long Dollars; an Importer is Short Dollars Your exposure is your position in the forex market. You have no choice but to manage that position. Might forex well do it well, no? I try this, I try that, but forex seems to work That is why, my last article highlighted the " Drawbacks of Common Hedging Methods ". Vikram Murarka Chief Currency Strategist at KSHITIJ. You may also like: Your Exposure is your Position Drawbacks of Common Hedging Methods First step to success in hedging: Sanction a Hedging Cost…. Get a Free Trial. Dollar Rupee Forecast Get a Free Trial. CATEGORY Forex Risk Management Investment Psychology Recently Added Research. TWEETS See what people talks about Kshitij Follow Kshitijfx Kshitij 15Jun17 USDJPY
This is the opposite of a fetus, which will only need to be nurtured for a few years and has basically unlimited or at least unmeasurable potential to succeed and contribute.
He enjoyed the company of intellectual and attractive women for many decades, particularly after the Battle of Waterloo and his subsequent Ambassadorial position in Paris.
This is the opposite of a fetus, which will only need to be nurtured for a few years and has basically unlimited or at least unmeasurable potential to succeed and contribute.
He enjoyed the company of intellectual and attractive women for many decades, particularly after the Battle of Waterloo and his subsequent Ambassadorial position in Paris.
She is sorrowful, and bids farewell to her very young grand daughter.