Economic trends: you can protect export revenues by currency hedging

Swings towards economic growth have hit exporters less favourably as the impact of the stronger pound hits profitability, says Charles Purdy, CEO of Smart Currency Exchange

 

The UK economy and its currency were just beginning to recover a year ago, but sterling strength was but a distant dream. Bank of England governor Mark Carney had just stepped into the role in July 2013 and faced a long road towards economic recovery. The UK economy’s eventual recovery arrived swifter than expected, charming currency markets into pricing sterling accordingly. This saw sterling remaining strong against other major currencies, including a failing euro and a flailing US dollar.

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