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Foreign exchange risk management

What is foreign exchange risk? 

Foreign currency exchange risks are an important factor for anyone trading in international currencies. Importers and exporters can be greatly affected by fluctuations in foreign currency from one day to the next.

Businesses without commercial contracts expressed in domestic currency (or fixed by an agreed rate of exchange) are fully exposed to exchange risk. Exchange risk may arise because of exchange rate movements in the period from the original commercial contract to the time of settlement of the domestic equivalent of the foreign currency amount.

Flexible Forwards Product Disclosure Statement (PDF, 244kB)

Foreign Exchange Contracts Product Disclosure Statement (PDF, 345kB)

Solutions to mitigate those exposed to foreign exchange risks 

ANZ provides solutions through: 

Foreign currency accounts 

Accounts denominated in a major foreign currency that provide the benefit of natural hedge through payables and receivables.

Foreign exchange contracts

To provide protection against unfavourable currency movements, these provide for the purchase or sale of one currency against another, where the rate of exchange is fixed at the time the contract is entered into for physical delivery at an agreed future date.

Foreign currency options

For added flexibility, foreign currency options provide a fixed exchange rate for a future date that can be used if rates move unfavourably, but give you the option of using the prevailing spot rate for that date if exchange rates have moved favourably. For this right to choose, you will pay a premium at the outset.

Supporting your Asia Pacific Foreign Exchange needs

ANZ is one of the world's 25 largest listed banks and a long established player in Australia and New Zealand, with a strong presence in 29 Asia Pacific economies, including the fast growing markets of China, India, Indonesia and the Greater Mekong region. We offer access to upward of 240 currency pairs (deliverable & non-deliverable). Our Foreign Exchange capabilities extend across the full product suite:

  • FX spot, forward and options products in all major investment-grade currencies
  • Comprehensive range of FX instruments on emerging markets currencies (including non-deliverable products)

It is ANZ's aspiration to be the best connected bank for our clients and we take pride in providing you with award-winning research and insights into Emerging Markets (EM) and G10 currencies. We offer competitive pricing on all major multi-bank platforms for G10 spot, forward, swaps as well as selective pricing of Asian and EMEA currencies. Your trades can be executed via voice and electronically, streamlining your connectivity to the global Foreign Exchange markets.

We believe that Asia will continue to drive global growth in the coming years. Our trading teams across Wellington, Sydney, Singapore, Hong Kong, London and New York are uniquely positioned to support all of your Asia Pacific FX needs, providing you with direct access to Asian liquidity, while effectively managing your risk.

Managing your FX risk and protecting your profits

We understand that no two FX profiles are the same. This is why our foreign exchange specialists have developed a range of flexible, global solutions for your evolving foreign exchange risk and the issues it can cause you and your business.

ANZ's capabilities enable you to protect your business from adverse movements in foreign exchange rates; depending on the solution you choose, we could also help you reap the benefits of potential favourable exchange rates for your business.

  • Participation in favourable exchange rate movements
  • Protection for your business from adverse exchange rate movements
  • Flexibility to tailor the solution to suit your needs

ANZ – A recognised FX leader

We have been consistently voted as the best for foreign exchange services by businesses just like yours across the entire Asia Pacific region (see below). Partner with us and make us your foreign exchange provider of choice.

Global Finance Best Foreign Exchange Provider Award 2015

  • Best Foreign Exchange Provider in Asia Pacific
  • Best Foreign Exchange Provider in Australia
  • Best Foreign Exchange Provider in New Zealand

FX Week Best Bank Award 2014

  • No. 1 Best Bank for AUD/USD (for the 10th consecutive year)

AsiaMoney Foreign Exchange Poll 2014 (overall)

  • No. 1 for Overall FX Services as Voted by Financial Institutions
  • No. 1 Domestic Providers of FX Services as Voted by Financial Institutions, Australia
  • No. 1 Domestic Providers of FX Services as Voted by Corporates, Australia

As voted by financial institutions

  • No. 1 for FX Products & Services
  • No. 1 for FX Options
  • No. 1 for FX Research & Market Coverage

As voted by corporates – Best Foreign

  • No. 1 for Overall FX Services, Korea
  • No. 1 for FX Products & Services, Korea
  • No. 1 for FX Options, Korea
  • No. 1 for Research & Market Coverage, Korea
  • No. 1 for Overall FX Services, Vietnam
  • No. 1 for FX Products & Services, Vietnam
  • No. 1 for Options, Vietnam
  • No. 1 for Research & Market Coverage, Vietnam

As voted by corporates – Best Domestic

  • No. 1 for Overall FX Services, Australia
  • No. 1 for FX Products & Services, Australia
  • No. 1 for Research & Market Coverage, Australia

EuroMoney FX Survey 2014

  • Most improved by volume overall


More information

For foreign exchange risk solutions, contact us to be referred to a relationship manager or call our Foreign Exchange Team: 

1800 640 574 from 8am – 8pm (AEST), weekdays

For businesses with turnover $5M to $40M

Contact us to be referred to a relationship manager:

Business Direct Centre

Call 1800 801 485 from 8am-8pm (AEST) weekdays.

For corporates and large corporates with turnover more than $40M

Contact us to be referred to a relationship manager:

1300 883 798 from 8am-8pm (AEST) weekdays

+61 3 9601 1260 from 8am-8pm (AEST) weekdays

Email Corporate Banking

This product/service is suitable for businesses of all sizes.