Currency hedge

Example:  Accurately estimate your USD payables for the year in less than 2 minutes . Photo: iStock (illustration only)

Example: Accurately estimate your USD payables for the year in less than 2 minutes. Photo: iStock (illustration only)

 

Ahmet works as a risk manager in a Turkish bank. For the past year, the bank’s USD payables have been rising drastically against its TRY receivables.

He gets a call from the Treasury desk – the Central Bank had just raised interest rates and TRY rose by 8% against USD. They wanted to hedge a large amount of USD but needed to act in less than 2 minutes. They asked him to give an accurate estimate of the bank’s USD payables for the year.

By using EyesClear, Ahmet can quickly identify the bank’s USD volumes for the past few months & years. Using the platform’s visual queues, he predicts a volume in less than 30 seconds. The Treasury acts before the correction occurs and the bank managed to hedge its USD risk. The Treasury team nets a good profit and Ahmet’s financial position for the year is much more secure.