Export development Canada
  • Français
  • MyEDC Account

    • Manage MyEDC Profile
    • MyEDC dashboard
    Log out of MyEDC

    Log in or sign up for…

    • Knowledge and advisory (MyEDC)
    • Credit Insurance
    • Portfolio Credit Insurance
    • Invoices and statements
    • Select Credit Insurance
    • Other EDC accounts
    • Contract Insurance & Bonding (EDC Direct)
    • Trade Partnership Insurance
    • Financial Institutions Risk Manager
    • Service providers
  • Contact us
  • 

    About exporting

    Seize new opportunities to grow your customer base, increase revenue and generate more profits.

    Welcome to EDC

    • Getting started
    • Diversify to new markets

    Trade expertise for

    • Cleantech
    • Black entrepreneurs
    • Indigenous Business
    • Women in trade
  • 

    Our solutions

    Manage the risks of doing business abroad and access the working capital and financing you need to grow your business.

    Managing Risks

    • EDC Trade Impact Program
    • Credit Insurance
    • Select Credit Insurance
    • Portfolio Credit Insurance
    • Performance Security Insurance

    Securing Financing

    • Investments
    • Investment Matching Program
    • Inclusive Trade Investments Program
    • Direct Lending
    • Buyer Financing
    • Structured and Project Finance

    Growing Working Capital

    • Working Capital Guarantees
    • Export Guarantee Program
    • Account Performance Security Guarantee
    • Foreign Exchange Facility Guarantee
    • Trade Expansion Lending Program
    • Surety Bonds

    Knowledge & Advisory

    • MyEDC
    • Get Export Help & Trade Advice
    • Search International Companies
    • Find Qualified Service Providers
    • Learn with EDC | FITT Lite Learning Series
    • Connect to Global Opportunities
  • 

    Country and economic info

    Research international markets and get expert insights into the trends driving global trade.

    Search by Country or Market

    • Search all countries and markets
    • Indo-Pacific market intelligence
    • Europe market intelligence
    • U.S. market intelligence

    Expert analysis and insights

    • EDC Economics: Connecting Canada to the world
    • Global Economic Outlook
  • 

    TradeInsights

    Explore our collection of learning resources designed to help you succeed in international markets.

    Browse Insights

    • Advice and insights
    • Webinars and events
    • Podcasts
    • Subscribe to receive EDC resources straight to your inbox
  • 

    About us

    Learn about Export Development Canada (EDC), a Crown corporation dedicated to helping Canadian companies of all sizes succeed on the world stage.

    About our company

    • Corporate information
    • Management and governance
    • Transparency and Disclosure
    • Corporate reports
    • Newsroom
    • File a complaint

    Environmental, Social and Governance

    • ESG at EDC
    • Environment
    • Social
    • ESG Governance

    Working with us

    • Careers
    • Student programs
    • Procurement
  • Log in

    • Manage MyEDC Profile
    • MyEDC dashboard
    • Log out of MyEDC

    Log in or sign up for…

    • Knowledge and advisory (MyEDC)

    Credit Insurance

    • Portfolio Credit Insurance
    • Invoices and statements
    • Select Credit Insurance

    Other EDC accounts

    • Contract Insurance & Bonding (EDC Direct)
    • Trade Partnership Insurance
    • Financial Institutions Risk Manager
    • Service providers
  • Français

Foreign Exchange Facility Guarantee

Protect your profits against foreign exchange risk

Lock in exchange rates without using your working capital as collateral

EDC’s Foreign Exchange Facility Guarantee (FXG) can cover your collateral requirements on foreign exchange (FX) contracts, helping you manage fluctuating currency rates without tying up your cash.

  1. Simplify FX budget forecasting

  2. Increase borrowing capacity

  3. Improve cash flow management

Contact EDC
A Black businessman contemplating in the office, looking out the window with a silver laptop on his lap.

Is FXG right for your business?

With a Foreign Exchange Facility Guarantee, your financial institution has up to 100% coverage on your FX contract, so additional collateral is no longer required. 

  • Lock in a rate ahead of time to make FX budget forecasts easier.
  • Keep your assets liquid by using the FXG as a replacement for collateral.
  • Use the unlocked working capital to fulfill your contracts, cover operations or pursue new contracts. 
  • Access more sophisticated FX hedging tools and book FX contracts for up to three years.

To be eligible, you need to:

  • Be a registered Canadian company that meets our definition of an exporter.
  • Have a business banking relationship with a Canadian financial institution.
  • Meet certain environmental, social and governance standards and other non-financial criteria.
  • Have (or be considering) an FX contract or other hedging instrument with your financial institution.

Guide: How to make your FX hedging strategy work smarter

Improving your foreign exchange hedging strategy is essential in today’s unpredictable global market. This guide helps exporters understand how to manage FX risks, choose the right hedging tools and build a strategic hedging plan.

I agree to receive trade insights and updates about EDC solutions and events. I can withdraw my consent at any time by unsubscribing.

Access your free guide

Consider sharing your business email address so we can personalize our latest insights to your business needs.

Tell us about yourself:

What are your total, annual sales?
Does your business deal with foreign currency?
Icon

Loading

Thank you! We hope you find this information useful.

How to get started with an FXG

  1. Step 1 1

    Get in touch

    Contact EDC or your financial institution to see if an FXG is a good fit for your business. Be prepared to discuss your growth plans.

  2. Step 2 2

    Review your FX strategy

    EDC will work with you to review your hedging strategy and the terms of your financial institution’s FX facility agreement (if you have one). 

  3. Step 3 3

    Set up an FXG

    EDC and your financial institution will work together to finalize the guarantee process.

With exchange rates fluctuating between 15% and 20%, the impact on our profit was unnecessarily large. So, we took a hard look at hedging to see how we could control that a little better.

Sean James Chief operating officer, ECBVerdyol
Landscape showing use of erosion and sediment control
Read the FXG case study

Frequently asked questions

As a Canadian company, if you sell goods and services internationally and get paid in a foreign currency, there’s a risk that exchange rates could change and you’ll receive less in Canadian dollars than originally expected. The reverse holds true if you are purchasing products in a foreign currency, with the risk that you will have to pay more. Foreign exchange risk management is how you can get protection against exchange rate fluctuations.

You can manage FX risk by implementing a sound foreign exchange hedging strategy, which your financial institution or other FX provider can help you establish. Learn more with our free guide. Some of the benefits of an FX strategy include:

  1. Your cash flow is more predictable, even in volatile markets.
  2. Your profit margins are safer.
  3. Your sales are protected from foreign exchange risk.
  4. You can budget costs and revenues more accurately.

There are a variety of ways to approach FX hedging. Each company is unique, and you should analyze your hedging needs with your FX provider. Generally, however, hedging falls into two categories:

  • Natural hedging: An exporter both buys and sells goods internationally, so that the exchange rate fluctuations offset each other, minimizing the difference between cash receipts and payments. For example, you could set up a foreign affiliate or subsidiary in a market, sell in the local currency and purchase supplies in that local market, therefore, paying in the local currency.
  • Financial hedging: An exporter buys foreign exchange hedging instruments through their FX provider. Some examples of these are forward contracts and options. All carry risk, so you need to work with your FX provider to determine the best fit for your company.
A happy mature businesswoman working in a creative office.

Have a question about EDC’s Foreign Exchange Facility Guarantee?

We’re here to help.

Contact us using the link below or call us at 1-800-229-0575

Contact EDC
Date modified: 2025-05-16

I consent to receive regular trade insights, as well as information about EDC solutions and events. I can withdraw my consent at any time by unsubscribing to any such message.

Sorry, our system is temporarily unavailable. Please try again later.

Thanks for subscribing

You’ll get our latest trade intelligence right to your inbox.

For partners and investors

  • Investors
  • Canadian financial institutions
  • Insurance brokers

Communities

  • Our alliances
  • Newsroom

Have questions?

  • Contact us
Government of Canada EDC Homepage
Export Development Canada
  • Privacy and Cookie use
  • Legal
  • Accessibility