Key takeaway comes from FX Managers’ Peer Group meeting.
The FXMPG summer 2014 meeting took place in early September in New York, sponsored by Thomson Reuters and Reval. The meeting covered some new angles on risk management topics such as discussions on risk management philosophy and communication as applied to FX; China hedging, an ever-changing undertaking under the evolving internationalization of the RMB and members’ increasing exposures in this market.
In the group’s continuing series of FX program reviews from “Soup to Nuts,” members heard a thorough review of a member company’s program and the benefits and challenges of the introduction of a trading company structure.
One of the key takeaways of this session focused on comparison communication:
Peer comparison and constant currency as key report items: When communicating FX results internally, one key item to illustrate the efficacy of the program is to compare (using publicly available data) key competitors’ YOY growth due to currency on a quarterly basis, which allows you to demonstrates lower volatility in this metric than your industry peers. Another important item is a side-by-side of “as reported” and constant currency growth numbers.
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