FX automation is not trading; it is operational governance that protects margins and makes cashflows predictable.
1) Map exposures and priorities
- Transactional: confirmed or highly probable orders.
- Translation: consolidation of foreign subsidiaries.
- Economic: impact on pricing and competitiveness.
- Assign an owner and confidence level to every flow.
Minimum data to automate
- Currency, amount and due date for each order.
- Probability (e.g., 90/70/50%) and target margin.
- Data source (ERP/CRM/Contract).
- Counterparty and country for risk limits.
2) Policy and operating limits
- Define allowed instruments (forwards, NDFs, options) and when to use them.
- Thresholds for auto-hedging and dual approval.
- Rules for max tenor, rolls and unwinds.
3) Key automations
- Auto booking on ERP triggers (order confirmed, milestone reached).
- Periodic multi-currency netting to reduce volume and cost.
- Alerts for mismatches between delivery and settlement dates.
4) Controls, reporting, audit
- Coverage ratio and FX P&L dashboards per currency.
- Full audit trail with logs and approvals.
- Exception reports for out-of-policy trades.
30‑60‑90 roadmap
- 30 days: minimum policy + first no-touch forwards.
- 60 days: ERP/CRM automation + netting.
- 90 days: advanced reporting and multi-country governance.