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  • 1.  Exchange rate fluctuations

    Posted Nov 23, 2015 06:31 PM

    Hi,

    I'd like to find out from those clients that use multi currency, How many use a yearly exchange rate (i.e. a rate that stays constant for that FY and that factors in the possible fluctuations) vs. those that use monthly rates

     

    I'm trying to steer away one of my clients from using monthly rates which (1) Makes the FX rate updates in PPM a challenge (2) Makes their forecasting, re-forecasting process quite onerous

    I'd like to propose a yearly rate if that's possible. But keen to find out how other large clients do it

    (this is more of a business question rather than a technical tool question)

     

    Thanks in advance

    Shamith



  • 2.  Re: Exchange rate fluctuations

    Posted Dec 06, 2015 08:14 AM

    Hi Shamith,

     

    Every organisation will have a different approach to this.

    it's very common for businesses to enter into derivative contracts to "smooth" out the uncertainty of exchange rates. So there's likely a "known" stable rate.

    You are right that FX rate updates are a pain (no XOG) and from a planning perspective one rate per year certainly makes it simpler for the PM to understand the inputs!

     

    #helpinghands