Straits, inflation, interest rates and FX: your exposures are becoming more complex

Blocked straits, input cost inflation, interest rate and currency volatility: your exposures have become more complex and the tools used to hedge them must evolve.

At the end of 2023, a strait that many companies would not even have been able to locate on a map, Bab-el-Mandeb, disrupted global supply chains, soon followed by Hormuz.

It served as a reminder of a fundamental reality: straits are the nervous system of the global economy.

At Kerius Finance, we mapped the 5 strategic straits and what they concretely imply for your risks and hedging strategies:

💡 Which instruments should be used?

💡 When should companies act? (Some hedging windows are currently open, while others will inevitably emerge in the coming months.)

💡 How can companies hedge the different layers of risk impacting their operations: input costs, prices, FX and interest rates?

Because companies that actively manage their risks do not simply endure volatility, they turn it into a competitive advantage.

Discover our Macroscope #4 below.