treasury
Treasury Services

Risk Management

Foreign exchange (FX) risk

FX risk arises as a result of changes in the value of a currency with respect to another one.

Our solutions:
  • FX forward: This tool will allow you to lock into a rate today, which will then be applied to your transaction at a set future date.
  • FX time option: This tool is effectively an FX forward, but with the added advantage of time flexibility, i.e. you can use the rate into which you locked in over an agreed time interval.
  • FX non-deliverable forward: There are a number of currencies, such as Chinese Renminbi and India Rupees which, because of exchange controls, are non-deliverable. You will not be able access the underlying currency. However, you can still protect yourself against currencies’ fluctuations in the markets through this instrument.
  • FX option: This tool can be used to protect against unfavourable currency movements, but still benefitting if there is a favourable movement in the underlying exchange rates.

Cash flow/Funding risk

This is the risk that a company's available cash will not be sufficient to meet its financial obligations.

Our solutions:
  • Access to a short-term loan facility to help you manage your cash flow risk. 
  • Through a foreign exchange swap, make more efficient use of your foreign currencies by using them to get access to a Mauritian Rupee loan, with the latter being used as collateral.

Interest rate risk

This is the risk associated with changes in interest rate levels, which can lead to changes in the value of the assets you hold and the cost of funding your business.

Our Solution:
Interest Rate Swap: An interest rate swap will allow you to lock into a fixed rate despite interest rates going up. Additionally, this tool can be tailor-made to accurately match your company’s debt repayment schedule.