16/09/2026
Volatile exchange rate movements can create valuable opportunities for businesses, but they can also introduce an unexpected behavioural risk. When the market moves in a company’s favour, the temptation is often to delay hedging in the hope of achieving an even better rate. In doing so, treasury risk management decisions can gradually shift away from protecting margins and cash flows towards attempting to predict where the currency will move next.
Read more: https://wauko.com/waunotes/exchange-rates-bad-treasury-decisions/
For importers and exporters, the key is to allow a well-structured FX policy to guide decisions through both favourable and unfavourable market conditions. Clearly defined hedge ratios, exposure limits and commercial objectives provide a framework for converting attractive exchange rates into protected margins, improved cash-flow certainty and more predictable financial outcomes. A good exchange rate is an opportunity, but it should never replace a disciplined treasury strategy. For deeper insights and tailored risk-management solutions, contact David du Plessis at [email protected], Karel van Niekerk at [email protected] or Evan May at [email protected].