Currency speculation or risk management?
Andrew Derry highlights the foreign exchange exposure INGOs face and asks if foreign exchange hedging is an appropriate solution
The statement that ‘most international charities are currency speculators’ may at first glance appear somewhat controversial; surely such behaviour is the sole purview of hedge funds and investment banks in the City of London? But, unfortunately, this statement is accurate. Many global organisations find themselves with income and expenditures denominated in different currencies.
Author: Andrew Derry
Andrew Derry is an independent consultant in the charity sector and is currently setting up NGO Treasury Services, a not-for-profit organisation, to work with NGOs to help them manage their treasury operations. Andrew’s career was previously in the financial industry, working at hedge funds JWM Partners and Long-Term Capital Management from 1994-2008 after having spent three years at the Bank of England. He holds an MSc in Applied Statistics from Birkbeck College (University of London) and a BSc in Economics and Statistics from the University of Bath
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