07 December 2010

More South Australian companies are minimising their foreign exchange (FX) risk in the wake of the high Australian dollar, according to National Australia Bank.

NAB has grown its Treasury team in South Australia to cater to increased demand as businesses look to manage this volatility.

NAB’s Treasury division in South Australia has tripled over the past year to a team of 12 specialists.

NAB’s Treasury division works with clients to manage market volatility in foreign exchange rates, interest rates and commodity prices.

The South Australian team works with NAB’s Agribusiness, Business Banking, Corporate and Institutional clients with specialists across foreign exchange, interest rates, soft commodities, base and precious metals and energy.

The team is led by NAB’s Head of Markets SA & NT, David Giovanelli.

“More South Australian companies are expanding through import and export activity,” NAB State General Manager nabbusiness, Jacqui Colwell, said.

“In particular, we are seeing a lot of export growth in both the resource and agribusiness sectors.

“NAB has increased our South Australian Treasury team and built a new dealing room as part of our long-term commitment to clients in this State.

“A key benefit for clients is that our Treasury specialists are based here in South Australia.

“NAB’s investment in locally-based specialists is in direct response to clients seeking locally based expertise.

“We are also making a deliberate effort to get closer to customers with foreign currency exposure so they can protect themselves against the impact of the volatile Australian dollar.

“South Australian companies are achieving significant success selling their products on the international stage.

“In the wake of the high Australian dollar, the State’s exporters are now using hedging strategies to mitigate their foreign exchange risks.

“Exporters are becoming more reluctant to lock in fixed contracts at current levels and are increasing their use of more flexible currency options to protect against foreign exchange rate movements.

“At the same time, importers are looking at foreign exchange products that will protect the margins created by a high Australian dollar. The key for them will be managing competitiveness should the Australian dollar continue to rise.”

Ms Colwell said the growth of NAB’s Treasury team in South Australia had significant benefits for NAB’s business customers.

“NAB has a strong focus on giving our business customers access to specialists across a range of areas including risk management, insurances, trade finance, asset finance, transaction banking and financial planning,” she said.

“The expansion of our Treasury team ensures we can offer South Australia’s exporters and importers specialist expertise in foreign exchange risk management at a time they need it most.”

Customers can access NAB’s Treasury specialists via their local NAB business banker.