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Navigate the complex world of currency management with our comprehensive dictionary of financial terms and definitions.
An international transaction is a cross-border trade agreement or a credit operation that requires settlement in a foreign currency. In the chronology of a typical international transaction involving the exchange of goods or services, the settlement date is the last stage. It is preceded by other stages, such as forecasting, pricing, contracting (SO/PO, sales order/payment order) and recording (AR/AP, accounts receivable/payable). To calculate their exposure to FX risk involved in international transactions, companies draw detailed transaction exposure reports that include not only the trade receivables and payables that are already on their balance sheet, but also the forecasted futures sales and purchases, and any other foreign currency-denominated receipts and disbursem*nts. The foreign exchange risk created by international transactions is best managed with Currency Automation Management solutions that allow firms to monitor FX exposure and automatically hedge transactions, whatever their number, and whatever the number of currency pairs involved.
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François Masquelier
Honorary Chairman of EACT
It is crucial for the corporate treasury to further automate processes in order to enhance internal controls, mitigate risks, fight against the growing risk of fraud and simplify processes.
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FX Risk Management" and discover new tools to efficiently centralise your liquidity management process