# Fx And Currency

> Manage foreign exchange exposure — transaction, translation, and economic — with policy, measurement, and appropriate hedging. Use when operating multi-currency businesses or evaluating FX risk and hedge programs.

- Skill: `itsual/fx-and-currency` (Agent Skill)
- Install (CLI): `npx skillmds@latest add itsual/fx-and-currency`
- Raw SKILL.md: https://api.skillmd.com/api/skills/itsual/fx-and-currency/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: itsual (https://skillmd.com/u/itsual)
- Updated: 2026-09-21
- Page: https://skillmd.com/skills/itsual/fx-and-currency

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# FX and Currency

## Overview

FX moves can erase operating gains. Currency management identifies exposures, sets policy, and implements hedges proportional to risk and expertise.

## When to Use

- Multi-currency revenue or costs
- Cross-border expansion
- Designing FX policy and hedge programs
- Explaining FX impacts in results

## Core Practices

- Identify transaction, translation, and economic exposures
- Measure net exposures by currency and horizon
- Set policy: what is hedged, by whom, with what instruments
- Avoid speculative hedging dressed up as risk management
- Report FX impacts separately from operating performance when material

## Principles

- Hedge risk you understand; don’t invent complexity
- Natural hedges (matching currency revenue and costs) come first
- Accounting hedges and economic hedges are not always the same
- Policy beats ad-hoc trader heroics

## Verification

- [ ] Material exposures are identified and measured
- [ ] Policy defines what is in/out of scope for hedging
- [ ] FX results are explainable in management reporting