Insight to All Things Currency and Treasury Management

As Q2 draws to a close, corporate executives and treasury professionals are evaluating currency trends, their progress so far and putting together their projections for the remainder of 2017.

As your organization works to improve financial results, now may be a good time to revisit some of the currency impacts we have witnessed so far in 2017.

At a high level, global currency volatility in 2017 has been marked by several key events, including…

  • The second round of French presidential elections in spring sent ripples through the global currency markets. But, as FiREapps CEO Wolfgang Koester wrote in April, “we do know if Europe is going to have volatility and anyone who is willing to bet on the election one way or the other is speculating! Investors do not want to see surprises, negative or positive!”
  • The Brazilian real also took a pummeling in the spring following the news that Brazil President Michel Temer was entangled in a bribery scandal, forcing market analysts to reevaluate previously optimistic projection for the local economy.
  • Both of these currency surprises reinforced findings from late 2016 when it currency risk management professionals identified market volatility, hedge timing, FX strategy and a lack of data among the biggest FX risk management challenges they now face.
  • Yet, despite these upsets, FiREapps own Currency Impact Report determined the Q1, 2017 was a respite of sorts from widespread volatility. Although future volatility can be expected, you can learn more about the relative calmness here.
  • If you are concerned that your organization may not be positioned to withstand the next gust of currency headwinds, read 5 ways you can enhance your corporate FX management program.

Looking Forward: FX Planning for the Remainder of 2017.

As you plan for the remainder of 2017, we offer this list of five things to consider when selecting an FX technology partner. Be to check out this infographic detailing the top reasons and why the leading corporations choose FiREapps to manage FX risk.

Next Steps

Are you sure your multinational is positioned to withstand the next currency crisis? As you know, even small exposures to currency volatility can have a major impact on your EPS.

Consider these options:

  • Are you seeking to better measure, monitor and manage your exposure and risk? Explore how FiREapps for Balance Sheet can help.
  • FiREapps for Cash Flow, meanwhile can help you create, analyze and better manage cash flow exposure forecasts.
  • Finally, if you’re concerned about driving currency awareness across the enterprise to improve FP&A Forecasts, consider FiREapps for Cash Flow.

Still unsure?

Contact FiREapps to learn what you can do to better position your organization to withstand currency volatility.