Currency analytics
What are currency analytics?
They are technology tools that allow companies with a global presence to manage the risks connected with currency volatility. Currency analytics often use automation that helps companies to access and validate currency exposure data and make decisions that can reduce currency risk.
Where have you heard about currency analytics?
FiREapps for Balance Sheet is one example of a currency exposure management platform that enables treasury professionals to manage currency exposure and the associated risk from their balance sheet. In 2014 Deutsche Bank announced a partnership with FiREapps to offer data analytics to its corporate clients.
What you need to know about currency analytics.
Managing cash flow risk is essentially about protecting the economic value of a company's future flow of cash from erosion by currency volatility. Currency analytics enable what/if scenario analysis so that companies can model how volatility in particular currencies could impact their revenue and expenses in the future. By drilling down into balance sheet exposure data, and presenting it in an easy-to-use dashboard, currency analytics can help make FX hedging more efficient.
