#Japan #Tokyo #Tradom #Forex Solutions #Currency Risk

Tradom Expands Currency Options for Emerging Markets

Tradom Inc., based in Chiyoda, Tokyo, has announced the addition of four new currency pairs to its AI-based forex risk management system, the Tradom Forex Solution. The new pairs—Taiwan Dollar/Yen, Philippine Peso/Yen, Mexican Peso/Yen, and Brazilian Real/Yen—bring the total to 18 currency pairs that can now be used for transaction registration and hedge guidance.

Background of Development

In recent years, there has been a marked increase in the number of companies engaging in trade with Asia and Latin America. This growth has led to a rising demand for effective management of forex risk associated with currencies beyond the major currencies. Emerging market currencies often exhibit high volatility, prompting calls for a more quantitative and strategic approach to forex hedging, rather than the previous reliance on instinct.

Data from the Statistics Bureau of Japan highlights the trend in exports from Japan to these four countries from 2018 to 2022. The export value to Taiwan rose significantly from approximately ¥4.7 trillion in 2018 to around ¥6.9 trillion in 2022, marking an impressive growth of nearly 47%. The Philippines and Mexico also saw notable increases of about 28% and 12%, respectively. Meanwhile, although Brazil's export volume remained relatively small, it has rebounded approximately 1.8 times since a drop in 2020, indicating a trend of recovery and expansion in Japanese exports following the pandemic.

Imports from these four nations have shown a long-term increasing trend, especially notable in Taiwan and Brazil. After a temporary decline in 2020 due to the pandemic, the numbers have stabilized and are showing consistent growth. As trade with these regions expands, the importance of effective forex risk management for Japanese companies becomes increasingly crucial.

Future Outlook

Emerging market currencies are susceptible to dramatic shifts due to multiple factors, including interest rate differentials and geopolitical risks, making prediction and management particularly challenging. However, as depicted in the data, the trade volumes with Taiwan, the Philippines, Mexico, and Brazil have been on the rise in recent years, leading to increased demand for hedging in these currencies.

In response to this environment, Tradom aims to continue expanding its currency offerings, grounded in real transaction data, while also providing practical forex risk management solutions that take into account the unique risk characteristics of each currency.

About Tradom Inc.

Tradom Inc., formerly known as Geefit Inc., is a fintech company dedicated to developing and providing solutions to effectively manage forex risks, one of the significant challenges in global business. The company combines traditional financial engineering with advanced mathematical models and AI-driven data science to create technology that supports the growth of globally engaged companies and contributes to the advancement of the fintech sector.

• - Company Name: Tradom Inc. (TRADOM Inc.)
• - Headquarters: 1-6-1 Otemachi, Chiyoda, Tokyo, Japan, located in Otemachi Building 4F, FINOLAB.
• - Capital: ¥533,694,766
• - Established: January 2015
• - CEO: Shinichiro Urashima & Nobuichi Sakane
• - Offers: Development and operation of the AI forex risk management system, 'Tradom Forex Solution' and management of the forex information community, 'Tradom Academy'.
• - Website: Tradom
• - Registration Number: Kanto Finance Bureau Director (Financial Instruments Business) No. 3329
• - Affiliation: Japan Investment Advisers Association.