Travelex and the Australian Government’s export credit agency, Export Finance and Insurance
Corporation (EFIC), have agreed to allow Travelex to provide eligible Australian exporters, including food exporters, with higher foreign exchange trading limits without the need for additional security from the exporter.
EFIC’s foreign exchange facility guarantee will provide the potential for Travelex customers to further increase their foreign exchange trading limits, thereby allowing them to expand their hedging programs protecting their profits.
Simon Glendenning, Travelex national manager, said the partnership is intended to directly assist exporters who find themselves unable to fully hedge their sales because they have reached the limit of their existing foreign exchange facilities.
“Foreign Exchange Hedging is an important risk management tool for exporters, protecting them from adverse currency movements. However, not all exporters are able to obtain an FX facility that allows them to adequately cover all of their hedging needs, without either incurring significant cost or tying up much needed working capital,” Glendenning said.
“With EFIC’s foreign exchange facility guarantee, exporters will be able to access increased limits from Travelex, providing them with the ability to better protect themselves against currency volatility.”
According to Andrea Govaert, EFIC’s executive director for SMEs, the agreement has been designed to assist small and medium-sized businesses.
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