Currency volatility will continue to be a major concern for SMEs throughout 2011.
The latest research from foreign currency specialist, HiFX, found that over a third (36%) of companies claim they are worried about the negative impact of currency fluctuations on their business.
When assessing their company’s FX exposure, a quarter said they look at what is on offer as and when they need to make a transaction, whereas just over one fifth (22%) keep a watchful eye on exchange rates to ensure they get the best deal.
One in five say they check rates at regular intervals.
But 18% of respondents owned up to rarely examining their FX exposure when they need to make a transaction.
Of those that do regularly check their company’s FX exposure, almost one quarter (23%) monitor rates available on a daily basis and almost a third (31%) say they check rates each week.
Ten per cent of companies say they carry out the task of rate checking every two months.
HiFX is warning SMEs that currency volatility will increase costs for businesses over the next year as moves in the FX market affect the cost of purchasing goods and services overseas.
Director Mark Bodega, comments, “With volatility high up on the list of concerns for small business owners, it is surprising to see that over two-fifths (42%) of those surveyed in our ‘FX for SMEs’ report say they don’t currently make any formal provision in their company accounts for FX exposure.”
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