Hubpay has introduced the UAE’s first fully automated hedging platform to help businesses, particularly SMEs, mitigate exposure to currency fluctuations. The platform’s forward contracts service allows businesses to lock in future exchange rates with just a 5% deposit of the notional value, providing protection against market volatility.
The foreign exchange (FX) market in the UAE exceeds $1 trillion, playing a vital role in the country’s trade-based economy. Hubpay’s forward contracts offer SMEs, which often face cash flow challenges, a way to safeguard their finances when dealing with international transactions.
For example, fluctuations in the Japanese yen—one of the UAE’s major trade currencies—can present significant challenges for local businesses. A recent shift of 7.8% in the yen’s value raised costs for a UAE-based SME by $39,000 on a $500,000 order. A forward contract could have locked in a more favourable exchange rate, helping the business manage its cash flow and protect its profit margin.
Hubpay’s automated platform operates across all deliverable currencies, 24/5, offering a streamlined solution for businesses looking to reduce their financial risk in international trade.
