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2016 Global Foreign Exchange survey
The survey considers challenges, the board agenda, treasury structures, hedging strategies and the use of technology. The lack of visibility over FX exposures and of reliable forecasts, and the manual nature of exposure quantification is a challenge for nearly 60% of corporates. Boards do not always receive sufficient information in relation to FX risk according to 37% of corporates, which limits the board’s ability to challenge and guide.
2016 is expected to exhibit similar levels of FX uncertainties as 2015 with different expectations around interest rate policies, quantitative easing removals, potential depegging of some currencies and other actions by global economies all driving FX volatility. The Brexit referendum is causing particular volatility for Sterling. Corporates’ ability to manage currency risk effectively will therefore continue to be tested in 2016. Technology and innovation are recognised as important enablers to achieve efficient and effective FX processes, yet many organisations still deal with a multitude of source information systems with limited interconnectivity.