Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Corporate treasurers are no strangers to the problems that restless currency markets can create for cash management and accounting. But few treasurers could have anticipated the currency turbulence that 2015 brought to the table.

The jolts began early in the calendar year, with the Swiss National Bank’s surprise decision on January 15 to de-peg the franc from its artificial cap against the euro, unleashing waves of volatility into global currency markets. As 2015 progressed, former emerging-market darlings became the epicenter for currency market tumult. China unveiled its own surprise devaluation of the once tightly controlled yuan in August. A depressed economic outlook, coupled with sinking commodity prices and political troubles, sank the Brazilian real. And other currencies tied to commodities followed.

In 2016, economic prospects are expected to remain flat for many emerging markets. This reality, coupled with the reactive monetary policies on the horizon in some locales, means that high volatility may continue to plague currency markets through the end of the first quarter, at least. That’s bad news for corporate finance departments.


Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.