Managing the corporate FX workflow: from silos to end-to-end automation
This article is written by Kantox Understanding Traditional FX Management In most organisations, foreign exchange (FX) management has traditionally fallen under the responsibility of treasury teams. Some industries where currency exposure represents a critical business component—such as airlines purchasing fuel and aircraft in USD—may employ dedicated FX managers whose sole focus is currency management. However, FX has historically operated as an isolated function within most companies. Treasury teams, typically embedded within larger finance departments, have struggled to access real-time FX exposure data. Consequently, hedging decisions are often based on outdated information or approximate forecasts, with hedge ratios and timing determined largely by experience and subjective assumptions about currency movements and volatility. Key challenge: Converting theoretical hedging policies into practical hedge executions has functioned more as an art than a science. The Broader Impact of FX on Business Corporate foreign exchange extends far beyond treasury operations and exchange rates—it significantly impacts accounting practices, hedging product valuations (mark-to-market, gains & losses), and perhaps most critically, a company’s commercial capabilities and competitive positioning. How FX Impacts Revenue Growth When selling internationally, charging customers in their local currencies demonstrably increases sales volume. Our client data at Kantox consistently confirms this pattern. However, implementing foreign currency pricing requires well-defined processes and risk management strategies. How FX Impacts Procurement and Margins Similarly, when paying international suppliers in their local currencies, companies typically negotiate better terms, leading to improved profit margins. Again, this approach necessitates appropriate fx-risk-management protocols.Strategic insight: FX should not be viewed as an isolated treasury function but as a company-wide strategic element that directly impacts top-line growth and profitability—a powerful tool for enhancing competitive advantage. Aligning Treasury with Business Operations The modern treasury team’s role has evolved beyond simply executing hedges and negotiating spreads (tasks that multi-dealer platforms like 360T or FXall have largely simplified through “best-price” automation). Today’s treasury function must align closely with This alignment requires treasury to implement automated processes that are both efficient and robust enough to handle complex multi-currency environments. The Corporate FX Lifecycle Treasury teams now need comprehensive management capabilities across the entire FX exposure lifecycle: This end-to-end lifecycle management represents a fundamental shift from viewing FX as a separate function to recognizing it as an integral component of standard business operations. The Automation Revolution in FX Management As companies expand their multi-currency operations, the complexity of managing numerous currency pairs across different business stages has increased exponentially. The days when treasurers could focus on manually managing their top 5-10 currency pairs based on appreciation potential are rapidly disappearing.Why automation is essential: The era of automation has definitively arrived—algorithmic systems can execute hedging policies with remarkable reliability, operating 24/6 at the micro-transaction level. Current State of fx-automation Solutions The term “automation” in FX simply means “performing tasks previously handled by humans.” However, the scope of automation varies significantly across available solutions. Many current solutions only automate narrow segments of the workflow: Platforms like 360T offer solutions that automatically route trades but don’t address the entire FX management process. FX analytics software like FIREapps can extract ERP or TMS data to calculate exposures and generate hedge recommendations automatically. While nearly every vendor claims to offer automation, implementations vary dramatically. For example, what SAP labels an “End-to-End FX Trading Process” still requires up to 17 clicks and multiple vendor integrations—hardly a seamless automated workflow. The Future of Corporate FX Management True fx-automation will integrate: Key Takeaways Also Read Join our Treasury Community Treasury Masterminds is a community of professionals working in Treasury Management or those interested in learning more about various topics related to Treasury Management, including Cash Management, foreign exchange management, and Payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
Franklin
When FX rates become your secret weapon in a volatile market
written by Jeroen Overmaat with his background of Sales at Kyriba Amsterdam, April 14, 2025 In today’s market, FX rates represent both a significant risk and opportunity for companies with international operations. The volatility we’ve seen in currency markets this past few days has left many finance teams scrambling to adapt their strategies. You might recognise this scenario: your team manually collects FX rates from various sources, inputs them into spreadsheets, and makes hedging decisions based on this labour-intensive process. Meanwhile, millions in potential savings slip through the cracks due to delayed or incomplete data. This approach simply doesn’t work anymore. Companies reported nearly £12 billion in impacts to earnings from currency volatility in a recent quarter alone. That’s not pocket change. The problem stems from what I call the “visibility gap.” Most companies have limited visibility into their true FX exposures. A finance director at a FTSE 100 company told me recently, “We thought we had about 70% of our FX exposure covered, but after proper analysis, it was closer to 40%.” That 30% gap represented millions in unnecessary risk. What’s changed? The combination of supply chain disruptions, geopolitical tensions, and economic policy shifts has created a perfect storm of currency volatility. Add fragmented internal data systems to this mix, and you have a recipe for financial surprises no CFO wants to explain to the board. FX rates as a component of liquidity planning Post-pandemic, CFOs have shifted their focus to increasing free cash flow with greater precision in forecasting and planning. FX rates play a critical role in this new approach to liquidity management. When currency movements impact your receivables and payables, they directly affect your cash position. The ability to accurately forecast these impacts allows for more informed liquidity decisions. This is where integrated cash and liquidity practices become essential. Modern solutions now connect FX management with broader liquidity planning, allowing treasury teams to see how currency fluctuations affect their overall cash position and make data-driven decisions about investing and borrowing. From reactive to proactive The good news is that technology has evolved. Modern FX management solutions now automate the entire process—from collecting real-time rates to identifying exposures across multiple systems and recommending optimal hedging strategies. Companies using automated FX management report impressive results. One manufacturing firm reduced its Value at Risk from £3.4 million to just £0.5 million. Another saved £2.2 million annually just on transaction costs. A third eliminated 63% of its exposure internally, transforming an FX impact of £0.06 per share to less than £0.01. The key is moving from reactive to proactive management of FX rates. This requires: Making FX rates actionable What makes today’s approach different is how it makes FX data actionable. Rather than simply reporting on exposures, modern solutions demonstrate the impact of hedging decisions with real-time data insights. This allows treasury teams and finance leaders to proactively manage the entire cash lifecycle end-to-end, with FX rates becoming a strategic tool rather than just a risk factor. The right technology partner makes this transformation surprisingly straightforward. Kyriba’s approach combines deep treasury expertise with cutting-edge technology to give finance teams control over FX risk while reducing costs and supporting broader liquidity objectives. As one treasury director put it, “We now spend our time analysing opportunities rather than collecting and validating data.” In a market where currency movements can make or break quarterly results, turning FX rates from a risk factor into a competitive advantage might be the most important financial move you make this year. Fancy a chat about how your company approaches FX risk? I’d love to hear about your challenges and share some insights from companies that have successfully navigated these waters. Stay sharp. Stay skeptical. Disclaimer Alert Folks, let’s get a few things straight: this article is my own personal take on the matter, and it’s as personal as your grandma’s secret cookie recipe – unapproved by anyone but yours truly! So, consider this article as my solo journey into the quirky world of tech, where my (sales) creativity dances with analysis. If it makes you chuckle or raises an insightful eyebrow, that’s awesome! If it makes you scratch your head in bewilderment, well, that’s part of the fun too. But remember, dear readers, this is all in good fun, and it doesn’t constitute official tech doctrine or employer-approved wisdom. It’s just me, my thoughts, and a touch of humor thrown into the tech mix. About the author The author is a seasoned Sales Account Executive at Kyriba Netherlands, where he helps organizations optimize their financial operations through cloud-based treasury, payment, and risk management solutions. With over 30-years of enterprise technology sales experience, Jeroen combines his deep understanding of the Dutch market with his passion for helping businesses transform their financial processes. Based in Arnhem, where he often finds inspiration cycling along the city’s beautiful nature reserves of the Veluwezoom, Jeroen has built a reputation for developing strong, lasting relationships with key decision-makers across the Netherlands’ enterprise landscape. Although recently started at Kyriba, his customer-centric approach and strategic insights have consistently helped organizations navigate the complexities of digital transformation that so many modern treasury management and financial risk mitigation departments currently face. As a technology enthusiast with extensive experience in enterprise software, Jeroen is passionate about helping businesses leverage innovative solutions to optimize their liquidity and streamline their financial operations. His collaborative approach and ability to understand unique customer needs have made him a valuable resource for companies looking to modernize their treasury and risk management practices. Jeroen has wrote many articles / blogs with his own personal view on the matters. There is no consistency in the cadence of his publications, he publishes when he feels like it. You can find these articles on his LinkedIn profile. Article’s used: Also Read Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and…