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Use our free simulator to estimate the net foreign-currency exposure of your activity and the indicative annual impact of an adverse FX move. A starting point for a clear treasury policy.
Net exposure is the difference between revenue and expenses booked in the same currency. The wider the gap, the higher the exposure to any adverse move on the rate. The collection horizon weights the duration during which the receivable is sensitive to FX.
Transactional (open receivables and payables), economic (long-term margin sensitivity to a weaker currency), and translation (consolidation of foreign subsidiaries). This simulator focuses on the transactional level.
Forwards, options, PCG and IFRS 9 accounting, contractual clauses: our deep dive on the topic.
Read the FX hedging articleMap your exposure before choosing a hedging strategy.
| Level | Definition |
|---|---|
| Transactional | Open receivables and payables in foreign currency |
| Economic | Long-term sensitivity of margins to a weaker currency |
| Translation | Consolidation of foreign subsidiaries |
Indicative framework. This simulator focuses on transactional exposure.
It is the risk that a change in exchange rates reduces the margin or result on transactions invoiced or paid in a foreign currency.
Net exposure equals revenue in a currency minus expenses in the same currency. The wider the gap, the greater the impact of an adverse move on the rate.
Transactional (open receivables and payables), economic (long-term margin sensitivity) and translation (consolidation of foreign subsidiaries).
Pairing revenue and expenses in the same currency (multi-currency account, local purchases, contractual clauses). It neutralises a large share of the risk without any financial product.
Forward contracts, currency options and swaps, to be arbitrated according to the horizon, the amount and the cost.
Conversion at the closing rate, with exchange differences recognised in profit or loss (French GAAP). Hedge accounting is possible under conditions (IFRS 9).
Our firm helps SMEs structure their FX policy, measure real exposure, set up multi-currency accounting, and arbitrate hedging tools.
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