A Global Bed Bank Use Case
Background
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.
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.
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.