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Strong Dollar Wipes out Record $43 Billion in Profits

Kyriba’s quarterly “Currency Impact Report” shows North American companies losing 26% more in Q3/2022 than in Q2/2022.

By Anya Andrianova | January 31, 2023 at 10:28 AM
Photo: Bundles of U.S. $100 banknotes arranged at the Shinhan Bank headquarters, a unit of Shinhan Financial Group Co., in Seoul, South Korea, on September 14, 2022. Photographer: SeongJoon Cho/Bloomberg Bundles of U.S. $100 banknotes arranged at the Shinhan Bank headquarters, a unit of Shinhan Financial Group Co., in Seoul, South Korea, on September 14, 2022. Photographer: SeongJoon Cho/Bloomberg

Foreign-exchange volatility hammered North America’s corporate profits to a record degree in the third quarter, though signs of relief are on the horizon.

Currency oscillations cost North American companies $43.2 billion in the July-to-September period—an all-time high since data tracking started a decade ago—according to Kyriba Corp. That’s a 26 percent spike from the previous quarter, which was also a record, according to the treasury management software company.

Public companies pointed to the euro, Canadian dollar, and ruble as the currencies weighing the most on profits in the period, followed by the Chinese yuan and the Japanese yen, according to Kyriba’s report released Tuesday. The euro and the loonie had also earned top mentions in the firm’s second-quarter report.

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