Foreign exchange deal raises trading limits
An agreement between Federal Government export credit agency the Export Finance and Insurance Corporation (EFIC) and foreign exchange services provider Travelex will provide eligible exporters with higher foreign exchange trading limits without the need for additional security from the exporter.
EFIC’s foreign exchange facility guarantee will provide the potential for Travelex customers to increase their foreign exchange trading limits, allowing them to expand their hedging programs protecting their profits. Importantly, the customer will not be required to provide additional security to Travelex in order to take advantage of the guarantee.
Foreign exchange hedging protects exporters from adverse currency movements but not all exporters have a facility allowing them to cover all of their needs without significant cost or tying up working capital.
“With EFIC’s foreign exchange facility guarantee, exporters will be able to access increased limits from Travelex, providing them with the ability to better protect themselves against currency volatility,” said Kerry Agiasotis, Travelex’s regional managing director for Asia-Pacific and Japan.
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