Exposure to currency fluctuation can be burdensome for wineries trading goods overseas. The impact of currency volatility can affect a wineries’ financial and inventory forecasts as well as their business goals and objectives. Mosaica can help small and medium-sized wine businesses reduce the risks of potential losses in their overseas transactions through currency hedging and significantly reduced currency exchange rates.

How Currencies are Hurting Wineries

Today, California wineries trading abroad are at risk of losing money on  their purchase orders. When the currency rates are not locked in at the point of the deal, the amount of the agreed upon transactions can  change at  the date of fulfillment. Wineries are losing money simply because the buyer or the wine companies local currencies fluctuated.

Wineries that are seeking help to reduce the risks are  turning to foreign exchange hedging instruments, such as forward contracts.

What Are Forward Contracts?

Forward contracts are a financial instrument utilized in currency hedging strategies. Forward contracts allow your business to lock the exchange rate at the current market price, while delaying the payment to the future date agreed upon in the contract. In simple terms, it is an agreement to buy or sell a currency at a specific exchange rate.

This can benefit small and medium-sized businesses because they are protected if their local currencies depreciates but may even gain some profit if their local currency gains more value. Forward contracts reduces the amount of currency exposure and are generally the most commonly used financial instrument. Wineries should seek opportunities to protect their businesses in the event of significant swings through currency  hedging.

How Mosaica Can Help Your Winery

Mosaica builds a customized, and holistic currency strategy based upon this specific business needs so wineries can focus on what matters the most: their business.

For physical currency needs, Mosaica offers currency exchange rates up to 50% of what the major banks are charging.

Our mission at Mosaica has always been to help small and medium-sized businesses thrive in new markets. Mosaica keeps our clients’ best interests at heart. We encourage them to take advantages of opportunities overseas, and our focus is to protect them from the currency risks involved.

For more information on currency hedging options, visit our website at www.mosaicafx.com .