fx_exposure
Quantify currency risk on USD ocean-freight spend paid in your home currency. Calculates exposure, volatility, 95% adverse FX move, and hedge ratio based on your risk tolerance.
Instructions
Quantify and hedge the CURRENCY RISK of your ocean-freight spend. Freight is quoted and largely invoiced in USD, but a non-US shipper PAYS in its home currency (EUR/GBP/JPY/CNY/…) — so a large, recurring USD freight bill is a foreign-exchange exposure: if the home currency weakens, the same freight costs more locally. Pass your home currency + your annual USD freight spend, and it returns: the exposure in your local currency at a modeled spot, the annualised VOLATILITY band of the pair, the 95% adverse FX move on the spend (in money), and a HEDGE-RATIO recommendation — what % of the exposure to cover with forwards — using a media-variance objective analogous to the procurement engine: higher volatility and a lower risk tolerance push the hedge up, but a variable spend caps it (you can't lock forwards for volume you might not ship), so it never blindly recommends 100%. It also sketches the forward-points carry (so the hedge isn't assumed free) and a laddered hedging plan. Honest (regla 7): MODELED reference analysis, NOT live market quotes and NOT financial / hedging advice — consult a treasury/FX professional. PREMIUM: pay per call with x402 (USDC on Base) or a prepaid key.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| local_currency | Yes | Your home currency you pay freight in: EUR, GBP, JPY, CNY, INR, KRW, CAD, AUD, SGD, BRL, MXN (or a name). REQUIRED. | |
| annual_freight_spend_usd | Yes | Your yearly USD ocean-freight bill (the USD exposure). REQUIRED. | |
| horizon_months | No | Hedging horizon in months (1-36, default 12). The exposure & risk are pro-rated to it. | |
| risk_tolerance | No | 'low' (hedge more), 'medium' (default) or 'high' (hedge less). | |
| spend_cv | No | Relative std-dev of your freight spend itself (e.g. 0.2 = ±20% volume). Caps the hedge ratio. Optional; default 0.15. |