Extended Streak of Intense Currency Volatility Has Cost Companies $100 Billion in Last Five Quarters
SAN DIEGO, Jan 22 (Bernama) — Currency volatility was responsible for significant impacts on the revenues of U.S.-listed multinational corporations, costing them more than $11.5 billion in Q3 2019, according to the new Kyriba Currency Impact Report (CIR), a comprehensive report which details the impact of foreign exchange (FX) among 1,200 companies in North America and Europe. This is the fifth consecutive quarter of $10+ billion in losses for North American companies – the longest such stretch in at least a decade.
“Waiting for currency volatility to calm down has been a $98 billion mistake for CFOs of multinational corporations. CFOs who dismissed this problem as a temporary wave of market drama have unnecessarily cost their shareholders and need to reconsider their strategy,” said Wolfgang Koester, Chief Evangelist for Kyriba. “Unless they utilize the tools now available to gauge and manage currency exposures accurately and in real-time,those that remain exposed to currency movements are at the mercy of currency markets to determine their financial success. CFOs and corporate treasurers should not be playing roulette with corporate cash and equity.”