FX in Focus | EP36

Mitigating Inflation, Recession, and Risk: Key FX Hedging Considerations

CalendarFebruary 28, 2023
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In this podcast, we speak with Edward Kim, Regional Director of Currency Risk Management Solutions at Corpay Cross-Border. We address what’s happening in the economy: why currencies move; and how a tailored hedging strategy can help mitigate currency risks. Ed touches on the topic of recession and inflation in relation to similar past events, market trends, and current challenges; and the factors that might increase currency volatility. He also highlights important considerations when managing FX exposure during a recession or downturn, and the elements of a flexible and diverse strategy that help mitigate risk in any economic climate.

Timestamps

  • 0:20 – Let's talk about the what, the why and the how. Do you think we are in a recession or entering into a recession? What exactly is a recession?

  • 3:20 – What is inflation and what causes it? Why is it bad? For example, inflation might be considered more of a monetary policy rather than a fiscal problem.

  • 8:44 – What sorts of factors are typically associated with currencies, either strengthening or weakening against other currencies?

  • 13:27 – How do higher interest rates typically affect the currency market in general?

  • 17:15 – Why has the USD often gained against other currencies when the stock market was going down, and vice versa?

  • 21:50 – What typically causes volatility?

  • 26:24 – What has caused the recession in your opinion, if indeed we are in a recession?

  • 30:34 – What are some specific considerations when managing FX exposure during a recession?

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Notice and disclaimer: By accessing the Podcasts I acknowledge that: (a) the contents are owned by Fleetcor Technologies, Inc. NYSE:FLT and the podcast is not to be replicated or used without permission of the owners; (b) these are high level general discussions and interviews to encourage conversation and do not provide professional guidance or advise; or guarantee results; (c) opinions may be expressed and owners cannot guarantee accuracy of same. This series is intended for North American audiences.(d) the views and opinions of the guests of “Fintech in Focus” do not necessarily represent those of the FLT companies.