FOREIGN EXCHANGE RISK MANAGEMENT
Hotel Equatorial Penang 1, Jalan Bukit Jambul, Bayan Lepas, PenangImporters and exporters who have payables and receivables in foreign currency are exposed to foreign exchange (FX) risk. During volatile exchange rate fluctuations, profits of companies may be eroded by adverse movements in foreign currency exchange rates if foreign currency exposures are not properly hedged. In extreme cases, foreign exchange losses may come to millions of ringgit and can adversely impact the bottom line of companies.