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    2 Replies Latest reply on Feb 2, 2008 11:59 AM by SageTrout

    Foreign Currency Hedge

    Theresa Newbie
      I buy raw materials from the philippines, compelte fabrication in the US and sell (wholesale) to US buyers. Our raw material cost has gone up 30% in the lat year due to weak dollar vs ph peso. Is there a way I can buy Ph pesos or somehow hedge against further devaluation?
        • Re: Foreign Currency Hedge
          LUCKIEST Guide
          T, Welcome to this web site. Tell us more. Where are you located?? How long have you been in business??
          Every thing is going up (except your bottom line). Do you have an Accountant??
          We have many experts in this website and some might be able to help.
          Good luck, LUCKIEST
          • Re: Foreign Currency Hedge
            SageTrout Wayfarer
            I worked for the US subsidiary of a Japanese company and we needed to hedge transactions from time to time. I used Wells Fargo for these transactions. I'm sure other major US banks have similar services.

            You will need to talk to a specialist in the bank's international division about their services and cost. Major banks hedge foreign currencies all the time and it's a lot easier letting them handle it than trying to do it yourself. You will need to identify for the bank when you need the funds phillipine pesos because that's part of their program.

            Call Bank of America, Wells Fargo, Citibank, and other major banks and ask to speak with their international banking division about hedging transactions. The bank may require you to transfer your banking relationship to them if you don't already have a relationship with them.