Currency Hedging: Reduce Foreign Exchange Risk for Your Winery

Online, December 16, 2013 (Newswire.com) - NEW YORK - Exposure to currency fluctuation can be burdensome for wineries trading goods overseas. The impact of currency volatility can affect a wineries' financial and inventory forecasts as well as their business goals and objectives. Mosaica can help small and medium-sized wine businesses reduce the risks of potential losses in their overseas transactions through currency hedging and significantly reduced currency exchange rates.

Wineries that are seeking help to reduce the risks are turning to foreign exchange hedging instruments, such as forward contracts.

Forward contracts are a financial instrument utilized in currency hedging strategies. Forward contracts allow your business to lock the exchange rate at the current market price, while delaying the payment to the future date agreed upon in the contract. In simple terms, it is an agreement to buy or sell a currency at a specific exchange rate.

This can benefit small and medium-sized businesses because they are protected if their local currencies depreciates but may even gain some profit if their local currency gains more value. Forward contracts reduces the amount of currency exposure and are generally the most commonly used financial instrument. Wineries should seek opportunities to protect their businesses in the event of significant swings through currency hedging.

Mosaica builds a customized, and holistic currency strategy based upon this specific business needs so wineries can focus on what matters the most: their business .Mosaica builds a customized, and holistic currency strategy based upon this specific business needs so wineries can focus on what matters the most: their business.

Mosaica builds a customized, and holistic currency strategy based upon this specific business needs so wineries can focus on what matters the most: their business.