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NA + European firms only lose $15.44 bn from negative FX in Q2

FiREapps quarterly report on negative currency on MNCs* in Europe and North America that reported FX impacts in earnings calls for 2Q 2018 showed that:  

  • North American companies negative FX loses increased to $1.02 billion, a 2,657% increase from the previous quarter 
  • European companies negative FX loses declined by 58% to 22.89 bn, but this was still the 2nd highest reported quarterly loss.

Other findings included:

  • Top 5 volatile G20 currencies:

  • Top 5 Volatile Currencies as Weighted by GDP Percentage:

  • EUR was most impactful currency for North American AND European companies
  • Overall:
    • 123 North American and European companies reported currency headwinds in Q2 2018. Of those companies, 70 quantified FX impacts.
    • There was a 150 percent increase in the number of North American companies reporting negative currency impacts in Q2 2018.
    • As negative impacts to European companies remain higher than previous years, the number of companies reporting impacts increased, but the number of companies quantifying negative impacts has decreased.

* The companies included in the research are large multinational firms doing business in more than one currency with at least 15 percent of their revenue coming from overseas.

CTMfile take: negative FX currency impact continues to be a major problem for many companies.

This item appears in the following sections:
Risk Management
FX Hedging & Risk Management

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