Over the past couple of years, corporate CFOs and their treasury, accounting, and finance departments have had to adapt to a resurgence in currency volatility.
Following a period of relative calm, a number of global macroeconomic factors—the interminable Eurozone crisis, doubt over when and how rapidly the world's interest rates will rise, falling commodity prices, and a slowdown in emerging markets and China—converged to create a perfect storm of uncertainty.
Together, these factors have routinely sent global foreign exchange (FX) markets into wild, often unpredictable gyrations. And that's not to mention the impact of "black swan" events such as last year's out-of-the-blue crisis in the Swiss franc. Compared with what is to come, however, the past two years may end up looking like a starter course.
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