Getting Started With CNS
      Back to home
      1. CNS Treasury Knowledge Base
      2. Getting Started With CNS

      FX Policy Settings

      This article explains how to view, adjust, and analyse FX policy settings in CNS Treasury, including compliance monitoring, dynamic policies, and historical performance review.

       

      1. Overview

      The FX Dashboard displays your exposures against policy limits, with visual indicators showing whether you are inside or outside your set policy bands. Policies can be customised for different time horizons, exposure types, and business units.

      2. Viewing FX Policy on the Dashboard

      • The FX Dashboard displays green and red lines representing your policy’s maximum and minimum hedge bands.

      • Policies can be layered and run across multiple types (e.g., importer vs exporter profiles).

      • Policy settings are pre-configured during onboarding but can be updated as needed.

      3. Hedge Compliance vs Policy Tab

      • Provides a snapshot of compliance for each currency pair over defined time buckets.

      • Example configuration:

        • Months 0–6: 60–100%

        • Months 7–12: 40–80%

        • Months 13–18: 0–60%

        • Months 19–24: 0–40%

      • This view is often used for board reporting to quickly show whether you are inside or outside policy.

      • Displays weighted average hedge rates across all periods.

      4. Editing Policy Settings

      1. Go to Administrator → Edit Policy Settings.

      2. Create a new policy or edit an existing one.

      3. Choose from policy types:

        • Basic percentage policy

        • Standard deviation policy

        • Fixed period policy (seasonal customers)

        • Committed vs forecast split

      4. Optional: Assign to a business unit or hedge accounting strategy.

      5. Example:

        • Select Percent from Spot rule using the five-year moving average.

        • Apply to all currencies or select specific ones.

        • Define hedge bands (e.g., 60–100% for the next 12 months).

      6. Save changes and run the FX Dashboard to view the updated policy bands.

      5. Dynamic Policy Example

      • A “percent from spot” policy can adjust hedge activity based on deviation from the long-term average.

      • Example:

        • Five-year average rate: 0.6374

        • Current spot rate: 0.6000 (6% below average)

        • Policy may allow increased hedging further out or reduced hedging if rates move in your favour.

      6. Viewing Historical Data

      • In the FX Dashboard, you can run historical views to compare:

        • Past deliveries vs forecasts.

        • Weighted average hedge rate vs spot curve.

        • Budget rates for each period.

      • Useful for evaluating whether policy settings are achieving intended outcomes.

      7. Support

      For detailed instructions or help updating your policy, see the CNS Knowledge Base or contact support@cnstreasury.com.