FX risk calculator

How does FX risk affect your business?

The FX risk calculator is a simple tool, enabling you to get an overview of the FX risk associated with the import and export activities of your business. By entering your annual income (if you are an exporter) or annual costs (if you are an importer) in the relevant currency, you can assess the potential FX risk.

Nordea will be happy to assist you in mapping the FX risk in detail and with proposals as how to handle the risk. Click the green contact button and enter your details and we will contact you.

Choose your local currency
Export

Enter your annual income in foreign currency.

Import

Enter your annual expenses in foreign currency.

The estimated FX risk associated with the incomeexpenses you have specified is

0 * per year *Calculated by Nordea Analytics with simulated Value at Risk (VaR).

My calculated FX risk is 0 per year. What does that mean?

Your income may decrease or your costs increase by an amount of 0 per year due to exchange rate fluctuations. The calculated FX risk can for example be compared to your results to get an indication of how it can affect your business.

To calculate the FX risk we apply a two-year exchange rate history for the currencies specified by you. Based on the fluctuations we can statistically calculate the annual increase in costs or the decline in income as a result of higher or lower exchange rates. The statistical calculation is based on a probability of 95%, implying that 5 times out of 100 you run the risk of an even sharper increase in costs due to higher exchange rates than shown above.

How do I handle the calculated FX risk?

You have now calculated your FX risk. The next step is, together with an FX adviser from Nordea, to perform a more detailed analysis of your currency flows and your business assumptions. Click the green contact button and enter your details. We will then contact you to further discuss your FX risk and the solutions best suited to your business needs.

The historical performance of the currencies used in your transactions with other countries versus your selected home currency is shown below:

Data provided by Nordea e-Markets. Nordea e-Markets.

Disclaimer
Nordea is not liable for the accuracy of the calculated FX risk as it (i) is based on information provided by you, (ii) does not take into account how your income or costs are distributed over the year and (iii) is based on static data that are not updated in real time. Note further that Value at Risk (VaR) is an indicative calculation of the maximum foreign currency loss that may be incurred given (i) a normal market situation and (ii) a probability level (95%). A probability level of 95% implies that the loss 5 times out of 100 will exceed the calculated risk. VaR is not a definitive expression of FX risk but constantly changes in step with market movements. The result should not be seen as exhaustive and nor should it be seen as advice or a recommendation to buy or sell financial instruments. Nordea Markets is not and does not purport to be an adviser as to legal, taxation or accounting matters.