Currency guide: Identifying risks, discovering potential

‘’One might think that foreign exchange products and solutions are just standard transactions, but that would be too simplistic,‘’ explains Martin Steiner, RBI Corporate Sales expert. ‘’Foreign exchange transactions can be very complex due to market volatility, regulatory requirements, and operational processing. While there are hardly any differences in pricing for the most important currency pairs, we also want to offer competitive prices for the less frequently traded currencies. But there is much more to it than that: We want to offer our clients a first-class service by providing them with valuable insights and advice on managing their foreign currency risks.’

‘There are several market situations and risks that clients often underestimate when it comes to FX solutions,’ the financial market expert says. ‘Exchange rates can fluctuate quickly and unexpectedly, exposing clients to significant risks if they are not properly hedged against this volatility. Counterparty risk is also sometimes overlooked. However, if the counterparty fails to fulfil its obligations, this can lead to significant losses. Errors in trade execution or settlement are another risk of foreign exchange transactions,’ he summarizes.

‘RBI is a reliable partner when it comes to managing these risks,’ explains Martin Steiner. ‘With us, companies and financial institutions have access to advanced risk management tools and analyses.’ In addition, there is the irreplaceable personal support of experienced foreign exchange experts: ‘Together with our clients, we develop effective risk management strategies that are tailored to their specific needs and risk tolerance.’ 

The basis for this is a comprehensive range of products and solutions from traditional forwards, options and FX swaps to more specialized products such as cross-currency swaps, options and structured products. ‘Our strength lies primarily in CEE currencies, as we have access to local currency flows in the region through our network banks. We offer more than 100 currency pairs, and the number is constantly growing,’ the specialist points out. Powerful back-office functions ensure the smooth processing of all transactions.

‘The ongoing volatility of the foreign exchange markets has accelerated the digitalization of treasury functions to create better decision-making options for investments and operations abroad. We provide our clients with state-of-the-art electronic trading including algorithmic execution. We have trading, sales and research teams on the ground in CEE, giving us a deep insight into the local markets,’ Martin Steiner specifies. ‘We expect it to remain challenging as ongoing geopolitical and economic factors are likely to further increase volatility in the FX markets.’

‘Through competitive pricing, personal service and customized solutions, we aim to create long-term value,’ he adds. ‘We want to provide our clients with personalized service and support to help them navigate the complexities of the foreign exchange markets and protect their financial interests. In short, we want to help our customers make informed decisions.’