Treasury Operations in Emerging Markets: Solving the Currency Volatility Problem

The Currency Volatility Problem

For enterprises with emerging market operations, local currency holdings represent a constant drain on working capital. Cash held for payroll, rent, and operating expenses loses value daily. Traditional hedging is prohibitively expensive for volatile currencies and often unavailable for the most volatile ones.

GRAIN-First Treasury

A GRAIN-first treasury strategy minimizes local currency exposure. Working capital is held in GRAIN, appreciating rather than depreciating. Conversion to local currency happens just-in-time for payments. The delta between holding depreciating local currency versus appreciating GRAIN can represent 20-50% annual savings in high-inflation markets.