Hi, I'm working on some FP&A and Sales planning models and I am interested to hear how people have dealt with heavy foreign currency exposures? How have you accounted for uncertainty and volatility around assumed currency exchange rates?
My models assume over 50% non-dollar currency exposure so can this can have a big impact on my potential total revenue forecasted.
Please see two article below on Pfizer as a public reference:
Appreciate the communities thoughts!
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Hi I would suggest to have the forecast done in the transaction currencies, further have a model to see how the exchange rate for calculations were derived so we hit the nearest possible rates.
I would further suggest to have few versions and variances for those versions so we can know how much hit are gain are we going to get from the currency fluctuations and what would our plan B be to hedge the same.