Importers and exporters should consider a new derivative-based model to reduce the threat from euro volatility next year, according to finance, treasury and investment consultants, FTI.

FTI director Mr Pat Leavy recommended that companies use a mix of options and hedging to reduce their currency exposure.

"We suggest buying a currency option on one-third of the amount, hedging one-third of the exposed amount and leaving one-third unsecured," Mr Leavy said.

"This results in currency exposure which is two-thirds covered and has two-thirds flexibility if the exchange rate moves in your favour."

He was speaking at the presentation of the FTI 1999 Award for Excellence to Mr Tony Morley, senior dealer, Bank of Ireland Treasury, who took first place in Dublin City University's (DCU) MSc in Investment and Treasury.