Economic Risk Programs

Economic risk programs for international investments and currency hedging – and arranging transaction processing agreements

Management toolsRTpay has advised fund managers, corporations and HNW individuals for many years on managing their portfolios, particularly related to the foreign exchange hedging requirements and transaction processing involved in international investments.

The relatively high risk of competitive devaluations in many parts of the world have meant that investment into developing countries can be far less profitable than at first may seem to be the case.

RTpay has developed specific risk reduction programs, including creating digital currencies based on multiple fiat currencies, such as the AIIB-based Asian Currency Unit, which tracks the weighted value of the combined AIIB currencies versus the USD, since January 2015.

The currency advisory service is often linked with work being done by on non-profit transaction flows, where the full value of support is missed by accepting too low a currency conversion. As part of this consultancy work, RTpay aims to assist matching transactions of a reverse flow format, so the net price is far better for both parties. This can be very important in cases where the official exchange rate is much lower than the market rate for commercial transactions.

The use of derivatives to lower interest rate and currency risk is an important part of the consultancy. This can also be used by some investors as a way to optimize the return they can achieve on their investments.

RTpay assists all forms of business improve their transaction processing costs, with many new products and a more competitive banking environment being available. While this can cut costs, the other feature of this service is to advise on reporting requirements and the increasing risks of fraud and security breaches.