Hesitant about the stronger rand? Here's how to structure your hedging strategy — Sebastian Steyn (Sable International)

While many individual investors and emigrants are postponing major financial decisions amid ongoing geopolitical uncertainty and upcoming elections, Sebastian Steyn, Head of Dealing at Sable International, says businesses do not have the same luxury. Steyn told BizNews that South Africa’s growing Business Process Outsourcing sector and multinational SMEs continue to receive revenue in foreign currencies while managing local operating costs, leaving them directly exposed to currency fluctuations. He cites the case of a client who saved millions of rands through proactive currency risk management using forward contracts and structured hedging solutions. Although several geopolitical and political risks remain on the horizon, including conflict in the Middle East and upcoming elections, Steyn believes preparation and planning remain far more important than trying to time the market. As he puts it, “It is not about being right all the time. It is about being prepared for all eventualities.” – Linda van Tilburg.