Lessening risks

Press, 20 February 1986, Page 35

Lessening risks

For those individuals or organisations with offshore loans — or who are exporters or importers — the risks of adverse moves in the exchange rate are very real.

D. L. Guthrie and Sons provide a service whereby they can identify the risks and take protective measurers on clients’ behalf, to avoid or minimise the effect of such moves.

As they are open 24 hours a day, they can continuously monitor exchange rates, and even though sharp moves in the currencies may occur outside normal trading hours in New Zealand, customers are always in the situation that Guthries are able to execute transactions using their worldwide dealing lines in order that the interests of their clients are protected.

Since the deregulation of the financial markets, Guthries have seen substantial volatility in the domestic interest rates. The New Zealand Futures Exchange now trades a contract whereby borrowers and lenders can lock in their future borrowing or lending rates and, by so doing, remove from their business the effect of this volatility. D. L. Guthrie and Sons provide a service where, through extensive use of computer-based charting and fundamental information from the money markets, they can advise customers on the strategic moves necessary to take full advantage of the sharp swings in Interest rates. Consumers and producers of commodities no longer have to hope that the market will be at a level that suits them at the time they wish to buy or sell that commodity.