If your company imports goods, pays overseas vendors, or books revenue in foreign currency, you have a treasury problem whether you've formalised it or not. Here's what the first 90 days look like when you do.
Days 1–30: understand exposure
Map every FX-denominated cash flow — inbound and outbound — for the next 12 months. Don't estimate; pull the actual invoices and POs. What you'll find is that 'FX exposure' is usually concentrated in 3–5 suppliers and one or two customer currencies.
Days 31–60: pick a hedging policy
- Conservative — hedge 80–100% of 6-month visible exposure via forwards
- Moderate — hedge 50% of visible exposure, leave the rest to natural hedge
- Aggressive — spot-only, accept month-on-month P&L volatility
Days 61–90: operationalise
Onboard with an AD Category-I bank
You need at least one AD-I relationship for inward remittances, outward wires, and forward contracts. Shortlist three, negotiate on markup and not base rate.
Set approval limits
Rule of thumb: single spot deal up to ₹25L approved by Finance Head, ₹25L–₹1Cr by CFO, above that needs board minutes.
Automate reconciliation
Every forex transaction has a UETR, a Form A2, and a purpose code. Get them into your ERP automatically — manual reconciliation breaks at scale.
