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Golden Agri Adopts Bloomberg''s Foreign Exchange Trading Platform By PR Newswire,  August 10, 2015, 09:32:00 PM EDT Vote up AAA Sets Industry Standard in Treasury Management SINGAPORE, Aug. 10, 2015 /PRNewswire/ -- Golden Agri-Resources Ltd has selected Bloomberg's Foreign Exchange trading platform (FXGO) for currency hedging and risk management. The world's second largest palm oil plantation company is part of a growing number of regional centers globally using Bloomberg FXGO to manage and trade risk for its businesses in Asia Pacific. "Bloomberg FXGO enables us to seamlessly trade G10, regional and emerging Asian currencies with best execution and straight-through processing," said Gopul Shah, head of global treasury and trade finance at Golden Agri. "The efficiency and cost savings gained using Bloomberg as an integrated trading solution allow us to better support the company's operational and strategic decisions while adopting industry best practi...

As Sun Tzu said in The Art of War, “If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.” Sun Tzu evidently underscores the importance of understanding risk and also explains that the flip side of risk is returns  Knowing the risks either helps in staying hedged or enables making money by riding on volatility. Just as returns are the flip side of risk, properly managed risk is cost saved. Volatility is here to stay; notice that there isn’t a straight line nor any direction in the commodity or foreign currency and the volatility index.  Case study:  The company imports commodity X in US dollars (USD) on sight terms, and it processes and sells consumer packs to its customers in local currency (LCY) through a countrywide local wholesale network on credit terms and t...

By  Gopul Shah Published:  2015-07-31 Commodity, currency, capital and money markets are facing increased volatility, and either price correlations are being broken or new market connections and correlations are being established amidst increasing basis risk. In current market conditions, where commodity prices are at their lows, most economies and companies are facing economic hollowing and deflationary impacts, shrinking corporate and bank lending budgets, and increasing tax burdens.  Multiple and diverse factors which are interconnected are exacerbating volatility—finance, fuel, food, environment, geopolitics and regulations. Corporates have to grapple with these factors and events, which exacerbate volatility into corporate business models. In this environment, businesses can thrive or perish.  Volatility is challenging companies’ fundamental business models, revenues and cost bases, and thus distorting their cost structure and pricing programs with customers and...