The hidden secret behind the different types of foreign exchange exposure

23-11-2021 | treasuryXL | Kantox | LinkedIn

Fresh from leaving the famous Genesis rock band that he helped found, songwriter and musician Peter Gabriel came out with an innovative album called Exposure, where his fascination with electronics and new recording techniques was openly on display. In the eponymous song, he kept on droning the E-word over and over:


Expert-led Conversation | The Digitalisation of Treasury: Your FX Risk Management toolbox for 2022 | 30 November 2021

treasuryXL | Kantox


Date & time: November 30, 2021 at 9.30 am CET | Duration 45 minutes

2022 is just around the corner, and we want to make sure you’re armed with the best technology tools to help push your treasury department to the next level. 

Join Kantox and TreasuryXL in this expert-led conversation on the future of FX risk management and the treasury trends to tap into in 2022.

Simplify your global business payments

18-11-2021| treasuryXL | XE | LinkedIn


Whether your business needs to process 3 or 150 international payments a month, learn how you can make payments to 220+ countries within your own business applications, and benefit from:

• Faster automated payment processes
• Savings using bank-beating exchange rates
• More accurate reporting by eliminating manual errors
• Secure transactions by validating payment data before it’s sent
• Transparency by receive tracking and reporting of each payment to its destination
• Flexibility to send to multiple currencies in a single file upload

Xe enables you to achieve everything a third-party payment provider has to offer, directly from your own business applications.


5 reasons why integrating Xe Global Business Payments into your own business applications will help power your business:

1. Improve your Financial Reporting
Xe Global Payments within your own business platform allows you to automatically reconcile foreign currency exchange rates directly at time of transaction. This means no more duplication or transferal of data from one application to another. Greater accuracy means greater transparency and visibility on your financial reporting, enabling you to make more confident business decisions.

2. Protect supply chain relationships and staff in overseas offices
If you are paying suppliers overseas, you want to ensure that your supply chain is protected, that you have full visibility on expenses so that your customer base is not impacted by any delays or rise in cost. And if you need to pay staff overseas you want to ensure they receive the right amount, on time, every time. By using Xe Global Business Payments within your own platform, any errors with bank account details are immediately highlighted, giving you time to rectify any costly mistakes.

3. Stop paying more than you should
Xe’s preferential exchange rates typically save you typically more money than if you used your bank for your business global payments. When you streamline your payment processes using Xe Global Business Payments in your own application, you are saving time on every overseas payment. That means you can save both time and money.

4. Improve speed and accuracy of high-volume, time-sensitive payments
It’s so important to have strict data verification and validation processes. We verify payments before they’re sent, so we can quickly flag any unsuccessful payments. For example, our system has a table of rules for each of the different payout currencies we offer. If you uploaded a payment to Brazil without a bank CLABE number, it would tell you it’s missing. Sending certain currencies can be extremely problematic, so we take out the guess work and make sure payments get where they need to go.

5. Get the right specialist support
A solution can only be as good as the support it offers. At Xe, we understand the daily challenges global Finance functions face. Our support team establishes a good rapport with clients and get to grips with the practical and technical elements of resolving problems quickly and efficiently. Our experts are available around the clock, to resolve issues no matter where clients are located or what time zone they’re in.

By using Xe Global Payments within your Microsoft Dynamics 365 or Sage Intacct applications, you can streamline your international payments process, and benefit from quality customer service and support from Xe’s front and back-end operations.


Treasury Analyst APAC @ Treasurer Search

Amsterdam – Full-time Read more

How To Expand Your Business Overseas

11-11-2021| treasuryXL | XE | LinkedIn

As a growing business, expanding overseas can present a lot of exciting opportunities. However, it also requires some careful thought as it can seriously disrupt your existing business activities – even if only temporarily. Therefore, it’s vital that business owners looking to expand have fully understood the impact this will have on the day-to-day running of the company, as well as determining whether the rewards are going to outweigh the risks. If going overseas is the next important step for your business, that’s great news, but knowing where to start can be tricky. You need to gain a deep understanding of the competition, local market, whether you’ll need new office space and how you’ll build your international team.

That’s why we’ve put together this guide. Below, we’re going to take a look at eight steps you must take when expanding your business overseas if you hope to succeed.

Read on to find out more.

1. Perform due diligence

Following on from what we said above, before you expand overseas, it’s crucial that you understand the marketplace, competition and the risks. The best way to do this is to perform a deep dive due diligence. This should involve:

  • A market segmentation analysis to determine if your product will be well received in the local market

  • A product gap analysis when compared with other local goods or services
    Competitor analysis

  • Your market opportunity/sizing

  • How you’ll need to grow/adapt your team to cater for your international expansion

By doing so, you can determine whether this is going to be the right move for your business and your workforce whilst weighing up the risks and rewards.

2. Put together a detailed strategy and business plan

As with any new business decision – especially one of this size – a detailed strategy and business plan need to be created. This needs to take into account the specific economic, cultural, governmental and market conditions in the local area.

Your strategy should include your short, medium and long-term goals, and it should set out your metrics for measuring success. It’s also important to create a budget, tactical plan, key dates and marketing strategy.

By putting together a localised strategy in this way, you can stay on the path to success whilst ensuring that your move overseas stays in line with the overall business goals and objectives.

3. Create a frontline team

When moving your business overseas, it can be tempting to quickly try and build a local team from scratch. This can be extremely time-consuming, risky and means your expansion is not going to get off to the best start.

Instead, you should consider relocating some of your key senior staff, even if the move is just temporary. By relocating proven and talented members of your team to your overseas location, you can hit the ground running.

After all, they already know the business, so they can get things set up. They can then help with the recruiting process to ensure that you employ local people who fit with the company culture and can continue to drive the business forward. This will obviously take a bit of work and lots of incentives to have staff members be willing to relocate but taking most of the stress out of it with luggage shipping and providing temporary housing is a good start.

4. Make sure your goods or services are prepared

Your gap analysis should have highlighted any areas of weakness, so you need to take the necessary steps to get your goods or services ready for the new local marketplace. This means:

  • Making changes to ensure your goods or services stand out from existing offerings

  • Determining whether you need to localise your goods or services. For example, does the name translate OK into the local language or does it need changing?

  • Getting a patent and trademark review to ensure your ideas cannot be duplicated by another local provider

  • Conducting tests and quality assurance to ensure your goods or services are up to local standards

  • Starting to build a local logistics and distribution network

5. Determine your organisational readiness

A one size fits all approach will not work when it comes to moving your business overseas. This is because the different languages, regulations, laws, customs and cultures will impact how you implement business policies and procedures.

Therefore, you need to make sure that your business can be flexible and accommodate these differences. You also need to evaluate your current structure and whether this will work in another country.

Not only this, but you need to decide on the average salaries, compensation packages and types of benefit programs you’ll be able to offer to your workforce. Remember, if you want to attract talented local professionals, you need to offer competitive packages.

6. Create a marketing strategy

When entering a new market, you need to make sure you have a go-to marketing strategy in place to help you effectively sell your goods or services overseas. This requires a strong sales model and methodology, as well as a pricing model that reflects the local market.

You also need to make sure that your branding will be well received by your new international customer base and create a marketing strategy that shouts about this.

7. Consider your legal readiness

Just as with your organisational readiness, you also need to make sure that you have all the necessary legal documentation and regulations in place, especially because some countries can be very litigious. If you’re unsure what you need to do, it might be time to get a professional opinion before spending time and money expanding overseas.

By ensuring that you get all the right local commercial agreements in place, review any local industry regulations and just generally stay proactive, you can mitigate the risks of legal action or problems further down the line.

This also includes getting the proper tax and finance infrastructures set up so that your foreign branch of the business is adhering to all local corporate policies and procedures.

8. Start establishing relationships with local businesses

The final step in this guide is to start establishing relationships with local businesses to give your own business a strong competitive advantage.

In doing so, you can create a supporting ecosystem of complementary products and services by working closely with local providers. For example, this could be manufacturers, shipping and courier services or local banks.

Now you’re finally ready to make the leap; you should be all set up financially, legally and with a team of talented professionals ready to help expand your business.

Netflix’s ‘Squid Game’ and the 45 billion won question: “How much is that worth?”

04-11-2021| treasuryXL | XE | LinkedIn

The South Korean won has unexpectedly become the world’s second-most searched currency.

It’s safe to say that almost everyone watching ‘Squid Game’ has wondered what the cash prize is actually worth in their local currency. Searches for currency conversion of the South Korean won (KRW) to various local currencies, especially the Mexican peso (MXN) and US Dollar (USD), have skyrocketed in popularity since the show started streaming on September 17th. Being the world’s most trusted currency authority here at Xe, we saw our traffic spike over 1,000% for just those two conversions alone.

45 billion is a lot of money in any currency. But for viewers everywhere, we are here to break down that number for you!

Using Xe’s live exchange rates, 1 KRW is worth approximately 0.00084 USD, or 0.01737 MXN, or… select any currency and see for yourself! That means that the cash prize amount of 45.6 Billion Korean converts to over $38,000,000 USD.

Now, if only I could find some white Vans for my Halloween costume… Those searches spiked over 7,800%!

Why Do Currencies Fluctuate?

21-10-2021| treasuryXL | XE | LinkedIn

These days, some currency rates are jumping to all-time highs while others plunge to record lows. Exchange rates are constantly fluctuating, but what, exactly, causes a currency’s value to rise and fall? Simply put, currencies fluctuate based on supply and demand.


Most of the world’s currencies are bought and sold based on flexible exchange rates, meaning their prices fluctuate based on the supply and demand in the foreign exchange market. High demand for a currency or a shortage in its supply will cause an increase in price. A currency’s supply and demand are tied to a number of intertwined factors including the country’s monetary policy, the rate of inflation, and political and economic conditions.

Monetary Policy

One way a country may stimulate its economy is through its monetary policy. Many central banks attempt to control the demand for currency by increasing or decreasing the money supply and/or benchmark interest rates.

“With a low interest rate, people and businesses are more willing and able to borrow money”

The money supply is the amount of a currency in circulation. As a country’s money supply increases and the currency becomes more available, the price of borrowing the currency goes down. The interest rate is the price at which money can be borrowed. With a low interest rate, people and businesses are more willing and able to borrow money. As they continually spend this borrowed money, the economy grows. However, if there is too much money in the economy and the supply of goods and services does not increase accordingly, prices may begin to inflate.

Rate of Inflation

Another variable that heavily influences the value of a currency is the inflation rate. The inflation rate is the rate at which the general price of goods and services are increasing. While a small amount of inflation indicates a healthy economy, too much of an increase can cause economic instability, which may ultimately lead to the currency’s depreciation.

A country’s inflation rate and interest rates heavily influence its economy. If the inflation rate gets too high, the central bank may counteract the problem by raising the interest rate. This encourages people to stop spending and instead save their money. It also stimulates foreign investment and increases the amount of capital entering the marketplace, which leads to an increased demand for currency. Therefore, an increase in a country’s interest rate leads to an appreciation of its currency. Similarly, a decrease in an interest rate causes depreciation of the currency.

Political and Economic Conditions

The economic and political conditions of a country can also cause a currency’s value to fluctuate. While investors enjoy high interest rates, they also value the predictability of an investment. This is why currencies from politically stable and economically sound countries generally have higher demand, which, in turn, leads to higher exchange rates.

Markets continually monitor the current and expected future economic conditions of countries. In addition to money supply changes, interest rates, and inflation rates, other key economic indicators include gross domestic product, unemployment rate, housing starts, and trade balance (a country’s total exports less its total imports). If these indicators show a strong and growing economy, its currency will tend to appreciate as demand increases.

Similarly, strong political conditions impact currency values positively. If a country is in the midst of political unrest or global tensions, the currency becomes less attractive and demand falls. On the other hand, if a market sees the introduction of a new government that suggests stability or strong future economic growth, a currency may appreciate as people buy it based on the good news.


There is no single indicator that explains exactly why a currency has fluctuated or predicts with certainty what its price will do. Instead, many factors related to demand and supply affect currency values. What has been shown is that more knowledge and understanding of market conditions and their implications for currency fluctuations leads to more accurate predictions.

#9 Not Searching For Alternatives

14-10-2021 | treasuryXL | Xe

This is the last part of XE’s ‘9 Mistakes Your Business Should Avoid’ journey. We have reflected upon Currency risk mistakes that companies worldwide often make. It is important to learn from these mistakes in order to avoid them. The message of this manual is that paying attention to foreign currency can deliver benefits ranging from increased value to better Risk management. To reap the benefits, it is important to work with a currency provider who understands what you need and who can help you achieve your goals. It is possible that your current currency provider can provide that, but if you don’t look around you won’t know if it might be better.

“Aandacht besteden aan vreemde valuta kan veel voordelen opleveren, variërend van meer waarde tot beter risicobeheer.”

Niet rondkijken naar alternatieve valutaservices is dan ook een enorme fout. Het is mogelijk dat u daardoor betere koersen misloopt, geen gebruik kunt maken van diensten waarvan u het bestaan niet kende en valuta niet strategisch kunt benaderen zoals zou moeten als praktijk en beleid een afspiegeling zouden moeten zijn van uw handelsomgeving. Ga er niet van uit dat de diensten die uw bank verleent, van het niveau en de kwaliteit
zijn die u nodig hebt. Het is gemakkelijk om bij uw bank te blijven en de zekerheid te hebben van een vertrouwde provider. Maar uw bank kan wellicht niet dezelfde verscheidenheid aan valutadiensten bieden als een gespecialiseerde provider die alleen vreemde valuta doet. Dat wil niet zeggen dat u de hype van concurrerende providers moet volgen. Als bijvoorbeeld een koers te goed klinkt om waar te zijn, dan is dat ook vrijwel zeker het geval. Wees ook sceptisch als providers u aanmoedigen om te gaan speculeren op valutamarkten of u ervan proberen te overtuigen dat ze koersschommelingen kunnen voorspellen.

Het klinkt misschien tegenstrijdig, maar de beste hedgepositie is degene die geen voordeel oplevert: een verzekering die u afsluit voor het ergste geval, terwijl u hoopt op het beste, namelijk dat de valutamarkten niet in uw nadeel bewegen. In werkelijkheid biedt zelfs een geslaagde hedge slechts wat meer tijd. Wat u nodig hebt, is een provider die de tijd neemt om erachter te komen wat de specifieke eisen van uw bedrijf zijn in plaats van een standaardservice te bieden. Competitieve koersen spelen natuurlijk een rol bij uw zoektocht, maar moeten zeker niet uw enige overweging zijn. U hebt een provider nodig die een oplossing op maat kan ontwikkelen die aan al uw eisen voldoet en u kan helpen om uw toekomstige risico effectiever te beheren. Neem met minder geen genoegen.

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No More Excuses! It’s Time to Implement the Right Hedging Program

11-10-2021 | treasuryXL | Kantox

More than half the participants of the Kantox & TMI FX Survey describe their existing currency hedging program as inadequate. And that’s not all: 72% of participants admit the need for updates and changes to their policies and programs going forward.

5 Tips for Currency Exchange

07-10-2021| treasuryXL | XE |

If you’ve ever travelled abroad, sent a money transfer to family overseas, or made international business payments, you know it can be a pain to exchange currency. Searching banks, online exchange providers, or the streets of an unknown city for the best rates can be time-consuming and costly. And, if you don’t pay attention, foreign exchange costs can add up.

Here are five tips to help you save on currency exchange.

1. Plan Ahead

Find out what the current mid-market exchange rate is with our XE Currency Converter or XE Currency App. Next, compare the rates and fees offered by banks, exchange cambios, and online providers. Once you find the best deal, exchange your funds.

2. Understand Foreign Exchange Costs

Some foreign exchange costs can be transparent and others can be hidden, so it is important to understand what you are paying for. Just like every other company, foreign exchange providers need to make a profit to stay in business. The following are three ways in which providers make money:

  • Currency providers may charge a commission, flat fee, handling fee, or minimum charge
  • They may include a spread in exchange rates by buying currencies at one rate and selling them at another – with a margin included
  • FX providers may also charge transfer fees for wire transfers and other delivery methods

You can calculate your currency exchange costs with our XE Foreign Exchange Charges Calculator. Or, download the XE Currency app for iPhone and use our Rate Advisor to compare your provider’s price to the mid-market rate.

3. Consolidate your Transactions

Since every currency exchange transaction has associated costs, fewer transactions can sometimes result in lower costs. Depending on the type of transaction, you may save money by consolidating several money transfers into one large transaction. Some foreign exchange providers may even offer better rates, or waive commission fees for currency exchanges over a certain amount.

4. Beware of Counterfeits

Every country has its fair share of counterfeit currency – some more than others. To avoid fakes, try to become familiar with the look and feel of the currency. Take note of watermarks and other security features. This can make spotting a fake easier, although it probably won’t be possible to spot a high-level counterfeit. Try to use trusted foreign exchange providers and established currency exchange companies.

5. Bank Overseas for Extended Stays

If you’re moving abroad, studying internationally, or plan to stay in a foreign country for a long period of time, consider sending money and banking overseas. Opening up a local bank account can minimize fees and help keep your money secure. It also makes consolidating your currency transactions much easier and helps mitigate the risk of currency fluctuations.