Mitigate currency risk and maximise working capital – experts in the field of financing discuss cash flow and the currency problems to avoid
Q What can companies do to mitigate risk when trading with the euro?
Main: Our trading with Europe is relatively limited but I think we need to look at credit risk and exchange rates. We need to look at them separately.
Northrop: Do you have big concerns about it?
Main: I’ve concerns on where the euro is going to go. Most currencies move about and we can cover those in our gross margin, but the concern with the euro is that if something major happens and there’s a large movement in it, rather than one or two per cent, it’s 20 per cent or 30