Foreign exchange risk management

According to the U.S. Chamber of Commerce, nearly 39MM American jobs - almost 1 in 5 - depend on international trade.¹ Dealing with the fluctuations of the global marketplace brings potential challenges and risks to your import and export transactions. To help mitigate those risks, you want a banking partner who can assist in servicing your special needs.

Flexible foreign exchange contracts

Hedging your foreign exchange risk grants you stronger control over and reduced exposure to rate volatility. Our flexible forward exchange contracts balance market fluctuations by letting you exchange one currency for another on a specified date. 

Benefits

  • A locked-in exchange rate based on the difference between the current interest rate for both countries
  • The ability to establish a fixed USD value on a foreign currency cash flow
  • Window contracts that allow currency exchanges within a specific date
  • Custom solutions that address your objectives and current market contditions

Keep in mind

  • Exchange rates are determined by supply and demand for the applicable currencies
  • Exchange rates reflect interest rate differentials, underlying political considerations, and economic fundamentals
  • A line of credit with Webster’s International Department must cover all expected USD exchanges
  • Foreign exchange contracts must link to a Webster deposit account

Let's enable your success.

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Disclosures

1. "The Benefits of International Trade," U.S. Chamber of Commerce, uschamber.com/international/international-policy/benefits-international-trade, July 2020.