BUY SIDE

Canadian Dollar Increases

in Value

How Managing Foreign Exchange Risk Can Free Up Your Cash Flow

FOREIGN EXCHANGE FACILITY GUARANTEE (FXG)

Foreign Exchange Contract Your bank agrees to lock in the exchange rate on the contract BUT they require collateral, which reduces your line of credit.

EDC FXG EDC provides your bank with an FXG, which eliminates the need for collateral, freeing up your cash flow.

› Lock in exchange rate without posting collateral› Take the guesswork out of budget forecasts› Know exact amount to be paid in Canadian dollars› Free up capital to take on more business› Protect profit margins› Facilitate the pricing of products

Time of Sale Exchange Rate = 0.9375

Time of Sale Exchange Rate = 1.0705

Canadian Dollar Increases

in Value

Canadian Exporter Loses

CAD$17,581

Canadian Exporter Loses CAD$17,820

Time of Settlement Exchange Rate = 1.0065

Canadian Exporter Expects to be Paid

CAD$320,000

Canadian Exporter Expects to Pay CAD$280,243

Canadian Exporter is Paid CAD$302,419

Canadian Exporter Pays CAD$298,063

MANAGE THE RISKS BENEFITS: CURRENCY PROTECTION & AVAILABLE CASH FLOW

HOW EXCHANGE-RATE FLUCTUATIONS TAKE A BITE OUT OF PROFIT MARGINS

Canadian Exporter Sells US$300,000 in Goods to American Customer

Canadian Exporter Buys AUD$300,000 in Raw Materials from Australian Supplier

SELL SIDE

Exchange-rate fluctuations is the leading constraint that holds back many Canadian companies from

increasing their export levels.

› Learn how to build a foreign exchange risk policy. Download guide.

#1 CONCERN

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Time of Settlement Exchange Rate = 0.9920