Banks failing SMEs on hedging

The Travelex survey of 50 UK firms last July found respondents from most SMEs had little understanding of hedging, and as a result relied upon spot transactions when payments were made or received.

Yogesh Shetty, group director of commercial foreign exchange at Travelex in London, said banks have not geared themselves for dealing with small companies. "SMEs talk to banks but find themselves confused by the jargon," he said. "As a result they do nothing and leave the potential for gain or los

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