top of page
pattern.png
  • Writer's pictureGrain

The Competitive Power of Local Collection Without Cross-Currency Volatility Loss

Updated: 3 days ago

A Global Bed Bank Use Case



Rising USD

The US dollar witnessed its longest winning streak in nearly nine years, gaining 5% since mid-July. Factors like positive US economic data and expectations of the Federal Reserve maintaining higher interest rates have fueled this rise.


USD EUR 2023 Q3

Case Study

Navigating the Rising USD with a Global Bed Bank Strategy

During Q3's peak travel season, a Global Bedbank mitigated the strong USD by accepting local currencies and hedging their exposure with Grain's embedded FX solution. Though they paid hotels in USD, their cross-currency solution protected the Bedbank and clients in countries like New Zealand, Australia, Japan, and others from FX fluctuations, ensuring reduced profit losses.


Bedbank turnover

Global bedbank turnover and FX loss

Potential profit loss without currency hedging: $1,105,041


Conclusion

By adopting Grain's embedded cross currency tool, Global Bedbank has not only empowered its clients by accepting local payments, but also successfully hedged against FX volatility, saving potential profit losses.

35 views0 comments

Comments


bottom of page