M-DAQ Finds More Than 70% of Businesses Unprotected From FX Risk – 4XPro Delivers the Solution

Currency volatility remains a critical threat to cashflow stability for  businesses operating across borders. The sudden surge of the Japanese Yen in August 2024  serves as a stark reminder, costing millions in unforeseen losses for companies with exposure to  the currency. 

M-DAQ Global — a leading fintech group specialising in foreign exchange and cross-border  payment solutions — today announced the launch of 4XPro through its subsidiary, M-DAQ  Market Solutions. The solution aims to equip businesses with customisable forward contracts,  empowering them to manage currency risks more effectively. This improves business  performance, providing more accurate cashflow forecasting and a clearer path to sustained  growth. 

As businesses expand their operations internationally, they face growing exposure to currency  fluctuations, from suppliers and vendors to customers. In this environment, effective FX risk  management tools have become indispensable—currency volatility directly impacts cash flow,  which can disrupt a company’s financial stability, particularly for those operating across multiple  currencies. Yet, an upcoming report by M-DAQ Global reveals that more than 70% of businesses  do not use hedging strategies to manage FX risk. 

“Maintaining a stable and predictable cash flow is critical for any company, and currency volatility  can introduce significant, often unpredictable costs,” shares Richard Koh, Founder and Group  CEO of M-DAQ Global. “4XPro provides an effective solution to this challenge. For example, a  subscription-based SaaS company that bills customers monthly in foreign currencies can lock in  a forward exchange rate, ensuring predictable revenue streams and simplifying financial planning  and budgeting.” 

“Another common scenario is payments that are done in instalments; if a construction company  in Asia signs a contract to pay a European supplier in EUR in instalments over the next nine  months, they can lock in forward rates to secure project costs. This prevents unexpected cost  overruns due to currency fluctuations.”

4XPro empowers businesses with seamless integration and the flexibility to tailor forward contract  terms to their specific needs, including broken dates and standard tenors up to one year across a  range of currency pairs, all backed by competitive pricing. This level of control enables businesses  to manage risk according to their unique financial goals and risk tolerance. 

The launch of 4XPro follows the recent obtention of a Capital Markets Services (CMS) license  from the Monetary Authority of Singapore (MAS) by M-DAQ Market Solutions, reinforcing the  company’s commitment to expanding its comprehensive suite of B2B FX solutions.