When I tell people that businesses manage their currency risk through my startup, Bound , many ask where I think currency rates are going. This is especially true amongst the American expat community I’ve found myself a part of in London… They love to ask me what the best way to move their GBP salary back to USD is!
They’re always a bit shocked when I tell them that I don’t follow rates. Sure, I know approximately where GBPUSD might be hovering around - but don’t be surprised if I’m off by a few cents.
In fact, I’ve almost made it a point not to follow the rates, as it goes against what we believe here at Bound: don’t rate gawk.
Rate gawking is when someone obsessively follows exchange rates in an attempt to convert at the perfect time. They may wait for exchange rates to drop a bit because they think buying USD is too expensive right now, or they may have listened to their drunken friend at the pub who told them “this Covid thing is nothing to worry about '' back in 2020.
Listen, if you think you can time the market, maybe it’s time to quit your desk job and start day trading currencies on a beach in Rio. Good luck with that!
Currency fluctuations are a pain, but they shouldn’t be something you have to constantly think about. That’s why we started Bound.
Your job as a treasurer or as CFO isn’t to make money on foreign currency; it's to reduce risk.
Bound wants to lower the barrier to hedging with easy to understand and easy to manage hedging products for CFOs and treasury teams.
Don’t be a rate gawker.
