SAN DIEGO, July 14 (Bernama-BUSINESS WIRE) — Kyriba’s Currency Impact Report (CIR), a comprehensive quarterly report detailing the impacts of foreign exchange (FX) exposures among 1,200 multinational companies based in North America and Europe, revealed a negative impact from currency volatility of $9.54 billion. North American companies experienced greater headwinds than their European counterparts in the first quarter of 2021, reporting $5.87 billion in FX-related negative impact — a staggering increase of 322% from the last quarter. By comparison, European corporations reported $3.67 billion in negative impact.
“Despite warnings that currency volatility would be on the rise, many companies were unprepared to manage FX exposures, according to the data. As businesses experience a post-pandemic surge in activity, CFOs were unable to keep up with currency movements, unnecessarily risking corporate liquidity,” said Wolfgang Koester, Chief Evangelist for Kyriba. “With nearly $10 billion in preventable losses, CEOs need their finance chiefs to understand the currency exposures within their balance sheet and take action to retain profits and maximize liquidity to sustain growth.”