In emerging markets, commodities companies face a higher currency risk and are subjected to foreign exchange rate fluctuations that threaten their margins. Hedging these risks involves using complex financial instruments and forward contracts to limit downside exposure, while still taking advantage of favourable rate movements.
CS Lucas helps large, commodity-dealing enterprises track and monitor risk exposure. The system is fully capable of handling offshore transactions in countries with capital control. As you handle the value chain upstream to downstream, CS Lucas can help you trim your finances across your integrated production to marketing activity.
Our clients in commodity businesses have found the following modules to be useful:
Cash and liquidity management
Settling trade flows and foreign exchange risk management
Foreign Exchange risk management
Short term company funding
Working capital and medium-term financing
Interest and foreign exchange risk management on borrowings
Working capital management
Project risk management
Long term debt for capital projects