David Gopal, head of Wells Fargo’s Risk Management Group, offers four safeguards companies can use to protect against the negative effects of exchange rate volatility
Volatility in currency markets has changed the way U.S. companies forecast their international business activities. The 2016 International Business Indicator survey reveals that 72% of U.S. companies agree that currency exchange rates play a role in international business decisions, but they’re split on how rates will affect their business.
David Gopal, head of Risk Management, shares findings from the 2016 survey, discusses why companies have opposing views on the effect of a strong U.S. dollar on their business, and offers four steps companies can take to protect themselves against currency volatility.
The Wells Fargo International Business Indicator tracks the strength and direction of U.S. companies’ international business outlook and activity over time. The survey includes responses of more than 250 executives at U.S. companies that conduct business internationally.
Find additional resources and learn more about the Wells Fargo International Business Indicator at wellsfargo.com/indicator.
For more information about risk management practices, read How are companies addressing FX risk?
David Gopal is the head of Wells Fargo’s Risk Management Group and is based in San Francisco. His team works with clients to design effective hedging strategies, utilizing foreign exchange options and cross-currency swaps.