Conexus Credit Union has partnered with a Canadian company to offer foreign exchange risk management to the credit union’s business members.
Conexus announced Wednesday that it had partnered with EncoreFX.
“We help companies by developing a plan or policy to take some of the risk of foreign exchange,” said Matthew Gustavson, EncoreFX director of national partnerships.
He used the example of someone buying a million-dollar piece of equipment. When they order the equipment from the American manufacturer, it might cost $1.3 million Canadian. But a sudden surge in the US dollar means that when it’s time to pay for and receive equipment, it now costs $1.5 million.
“We help companies understand those risks, plan for them and develop contracts that are traditionally reserved for larger companies through capital markets or markets divisions of banks.”
Conexus and EncoreFX hope the partnership will open those sorts of options for small and medium-sized businesses, such as agricultural clients.
“Conexus actually approached us and said ‘we recognize that you guys are well-respected in this industry. We feel that our embers could leverage that expertise and really benefit from strong advice in this area,” Gustavson said.
“We share a lot of similarities in our practice. For a small retail business or a large grain trader, we want to ensure they have the best tools to manage their foreign exchange risk.”
Conexus is the largest credit union in Saskatchewan.