Currency Risk Management

In Uncategorized by African Energy

This is from the Currency Risk Management Division of African Energy :-).

As you are aware, we have entered a somewhat turbulent international financial environment, characterized by exchange rate volatility generally resulting in a weakening of many African currencies against the US dollar.  We know this causes difficulties for our customers, such as effectively increasing the prices of our products, as well as foreign exchange (US dollar) shortages at many of your banks.  African Energy’s business focus is the wholesale distribution of renewable energy products, and we do not undertake to actively manage foreign currency risk.  Given the number of currencies and countries in which we operate, this would be such an enormous task that it could potentially divert our limited resources away from the main objective of our company — Providing a reliable and efficient supply chain, and offering quality products at competitive prices throughout Africa.  Our policy, therefore, will remain one of pricing all goods in US dollars. We request that you continue to make payments to our bank in the form of US dollar-denominated wire transfers.  Thank you for the opportunity to serve your needs as we focus on being Africa’s premier source for renewable energy.