Statrys Payment Platform Ecosystem

How to Factor Interest Rate Risk in Your Hedging Policy?

Jonathan Cusimano
Published: 19 Feb 2020

contents

    Does interest rate risk have the same weight as FX risk? Interest rates are usually far less volatile than FX rates, therefore a company’s FX exposure is usually greater than its interest rate exposure. However, the latter must not be ignored, as interest rate fluctuations can be as unpredictable as FX rate changes.

    What is the impact of interest rate volatility on a company? 

    The infographic below summarizes the interest rate risk in six scenarios:

    How to Factor Interest Rate Risk in Your Hedging Policy?

    Click here if you want to read more about managing interest rate risk.

    author
    jonathan Statrys
    Jonathan Cusimano

    Jonathan Cusimano is Head of FX at Statrys. With nearly a decade of experience in banking and Fintech, Jonathan has advised and assisted many SMEs in their FX hedging and treasury management strategies.

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    Statrys Limited is licensed as a Money Service Operator (No. 19-02-02726) in Hong Kong. ‍ Statrys UK Limited is a Small Payment Institution (FRM: 911226) registered with the Financial Conduct Authority in the United Kingdom. Statrys UK Limited (FRM: 902805) is a registered agent of PayrNet Limited (FRM:900594), an Electronic Money Institution authorised by the Financial Conduct Authority in the United Kingdom under the Electronic Money Regulations 2011 for the issuing of electronic money. Trade financing services are offered by our partner, Velotrade Management Limited, regulated by the Securities and Futures Commission of Hong Kong (CE Ref #BJL007)