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Treasurers of global corporations are feeling the impact that currency volatility can have on their business. Volatility has spiked in recent months, as central banks around the world have begun to actively manage their currencies.

“Historically, G-10 central bankers were in agreement,” says Wolfgang Koester, CEO and co-founder of foreign exchange (FX) analytics software vendor FiREapps. They almost universally thought: “‘Whatever is going to happen in the currency markets, we’re going to ensure it’s a concerted effort and we’re going to control the markets so that volatility doesn’t create unnecessary risk.’”

But now that attitude seems a relic of times past. “We haven’t heard that sentiment since the Swiss National Bank made an unconcerted decision to manage their currency,” Koester notes. “Even [European Central Bank president] Mario Draghi made the statement a couple months ago that volatility is here to stay. If somebody like Draghi comes out and bluntly states that, you know everybody is in it for themselves.”

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