You pay a premium in advance for this right, just as you would with any insurance policy. Offset risk by borrowing in foreign currency. London Interbank Offered Rate-based loans, denominated in currencies other than US Dollars, can minimize currency risk in a number of ways. Let's say your assets in a foreign subsidiary are valued in a volatile currency. Take out a loan with Imperial and create a liability in the same currency, but under more favorable terms.
Interest is based on the prevailing market interest rate in the individual country.
Diversify your cash while netting exposures. This account, which may or may not be interest-bearing, is a tool for diversifying your portfolio and potentially securing a higher nominal interest rate than you'd receive in US Dollars. Get paid faster. Utilizing our worldwide correspondent bank network, this service lets you speed the fund transfer process when receiving payments from subsidiaries or clients abroad. Because conversion takes place at Imperial, the service can often improve your exchange rates significantly.