A third of British businesses are “dangerously exposed” to foreign exchange volatility as more companies turn to overseas trade.
Two thirds of medium and large firms are doing more international trade than in 2014, yet 32 per cent don’t take measures to protect themselves from swings in exchange rates and hedge risks, according to research from Fexco Commercial FX Services.
David Lamb, head of dealing at Fexco, said: “In the current climate of tight margins, a sudden shift in the value of the pound can make the difference between profit and loss on a business deal. Failure to [secure a fixed rate] can leave a company as a sitting duck if exchange rates go against it.”
Financial and professional services firms are some of the least protected, with 75 per cent of professional services firms saying the have no strategy to mitigate forex volatility.