In Q1/2020, FX volatility reduced earnings of nearly one-quarter of multinationals based in North America or Europe, suppressing earnings in aggregate by more than $12 billion.
In a hazy future, what seems clear is that investors may need to say goodbye to the low-volatility FX environment, with hedging throughout 2020 likely to be expensive.
Some companies implemented this technology in the recent past, while others will do so soon—as well as to the technology's most valuable benefit: gaining more time for treasury staff to focus on other tasks.