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CASE STUDY: FX Risk Management


Unique Business Requirements and Non-Traditional Currency Pairs

Tags

  • Australia
  • Foreign Exchange
  • Infrastructure
  • Kuwait
  • Risk Management

“ANZ have the speed, agility and expertise to to address our FX needs as and when they arise.”

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Find out more about better management of your foreign exchange risk with ANZ.

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After the recent win of a large construction project in Kuwait, worth in excess of USD1bn, we found ourselves exposed to exchange rate fluctuations in an increasingly volatile environment. What's more, we had access to a limited number of banks in Korea that could pair USD/KWD (Kuwaiti Dinar) currencies, let alone hedge Kuwaiti Dinar receivables.

To help us set up USD/KWD dealing capabilities we chose ANZ. They already had a strong reputation in the Korean shipbuilding and construction industry for providing long-term hedges for USD/KRW and G10 currency pairs. Plus, a proven track record in the set up and dealing of non-traditional currency pairs, such as USD/VND Non Deliverable Forward’s (NDFs).

The solution they provided included:

  • Education on the dealing conventions of Middle Eastern currencies as well as their historical trend and outlook.
  • The setup of USD/KWD dealing capability within ANZ and informing us on currency updates, market trends and currency conditions.
  • The hedging of KWD receivables with ANZ along with regular updates on USD/KWD rate market trends and trading conditions.
  • Safe hedging of our KWD exposures through KWD FX forwards to minimise the risk against vast movements of KWD against USD.

Our customer would like to remain anonymous. 

“With ANZ we have a banking partner that goes the extra mile to support our evolving business needs.”

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