After the announcement that the United Kingdom had voted to leave the European Union, market chaos arrived swiftly. In two days, the British pound fell 12 percent against the U.S. dollar, to its lowest level in more than 30 years. The consequences of this move were clear: Brexit will slow the European economy, and its effects will ripple around the world.

This currency crisis, like others that have come before it, involves more than a single currency. Thus far, we have seen ripple effects from Brexit in the pound, euro, Mexican peso, Swiss franc, and yuan, to name a few. Global corporations are asking not only "How low will the pound go?" but, more importantly, "How will Brexit impact the corporation across all of its currency pairs [which may number in the hundreds]?"

What Is a Treasurer to Do?

Corporate treasurers and CFOs must understand, be able to communicate, and manage the impact of Brexit on the business. Many boards have already called meetings to ask CFOs the six questions below. Analysts will absolutely be asking similar and much more clinical questions during Q2 earnings calls. CFOs should be prepared to answer them.

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