Understanding FX risk in Africa
What are your hedging options?
One of the most important components of country risk is foreign exchange (FX) risk. TowerXchange spoke to Wells Fargo’s FX expert Scott Gooch to learn how companies investing and operating in Africa could hedge to “lock in” an FX rate, or range of rates, thereby controlling exposure to FX risk in their budgets and transactions.
TowerXchange: Please tell us about the FX risks related to investing in African countries.
Scott Gooch, Director, Corporate Foreign Exchange, Wells Fargo:
When making a decision to invest or grow business in an African country there are several key risks that companies must weigh including their overall business model risks, economic risk, and geopolitical risk.