Webinar Recap: De-Dollarisation & How Treasurers Can Build the Right Hedging Strategy
Hosted by Treasury Masterminds and Ebury Resources from Ebury For those wanting to dig deeper into the trends shaping de-dollarisation: Download Ebury’s De-Dollarisation Playbook Free FX Audit from Ebury The final webinar of the year landed with a full house and a topic treasurers clearly can’t get enough of: the shifting role of the US dollar and what it means for hedging strategies in 2026 and beyond. We brought together two complementary perspectives: Below is a breakdown of the key themes and insights for those who couldn’t join live. The Audience Warm-Up: What’s Your Biggest USD Challenge? We opened with a poll. Three choices, one predictable winner: Treasurer everywhere apparently bonded over volatility-induced stress. The Real Story Behind De-Dollarisation Despite dramatic headlines, de-dollarisation is not a sudden-collapse scenario. Both speakers clarified: The shift away from the USD is slow, policy-driven, and structural. Key drivers behind the trend Camille highlighted a major behaviour shift in markets:The old correlation between global volatility and a stronger USD is breaking. Asset managers have started hedging USD exposures they historically left open, and those flows helped push EURUSD higher in 2024. On the Ground: How Treasurers Are Actually Paying Neicy gave an unfiltered view from Angola, where USD scarcity can slow or halt critical operations. Key takeaways: It’s not pretty, but it works. And it shows how far treasurers must stretch when macro conditions refuse to play along. The Blind Spot: “Dollar In, Dollar Out” Isn’t Zero Exposure A common misconception: Using USD on both the buy and sell side equals a natural hedge. Camille explained the trap: If your counterparty’s functional currency is not USD, they carry FX risk too. And they often hide that risk in pricing. One example: Chinese suppliers often increase RMB prices when USD weakens but rarely lower them in the opposite scenario. The result is an invisible premium. Switching to local currency invoicing (RMB, EUR, BRL…) can strip out these markups. Should Treasurers Hedge More in Local Currencies? Often, yes. Benefits: RMB liquidity is now strong, so the old argument of “difficult to hedge” no longer really applies. Clients who switched saw reduced costs and clearer pricing. Yes, renegotiation takes effort. But that effort pays for itself. Hedging Strategies Treasurers Are Turning To 2025 saw a noticeable shift: 1. Layered hedging over simple rolling hedges Spreads timing risk, reduces exposure to single bad entry points. 2. Option-based structures resurface Treasurers want: Options provide that balance. 3. Greater focus on cost of carry Forward points have moved.Hedging long tenors is now cheaper than earlier in the year. 4. Multi-currency optimisation If USD hedging is expensive while BRL or EUR hedging is favourable… adjust the portfolio. Treasurer Reality Check Neicy made one of the session’s most candid points: “When we don’t know, we don’t do.” Many emerging-market treasuries simply lack stable markets or instruments needed to hedge conventionally.Their main levers: Sometimes survival absorbs the full definition of “hedging.” Final Advice for Treasurers Heading Into 2026 From Neicy From Camille Together their message was simple: Treasury is changing. Markets are changing. Hedging strategies must evolve too. Watch the Full Webinar Recording If you want the full conversation, audience Q&A, and all the nuance, the full session is now available on Spotify. Notice: JavaScript is required for this content.
Franklin
The CFO’s Guide to Choosing FX Providers: Banks vs Brokers vs Fintechs
This article is written by HedgeFlows If you’re a CFO managing international payments through your bank, the amount you’re overpaying depends entirely on your size – banks charge SMEs 2-3% while giving large corporates 0.1% for the exact same service. Yet the same SME could get 0.4% from a fintech in minutes. Or you can start with an FX broker with a tight spread and catch them overcharging a few months later. This isn’t about market dynamics; it’s about providers exploiting your inertia. Add the cost of unhedged risk, and the real damage to your bottom line becomes clear. When comparing FX providers, whether banks vs FX brokers or Wise vs traditional FX, the landscape is deliberately opaque. Banks vs FX Brokers vs Fintechs: The Hidden Truth About Your FX Costs This comprehensive FX provider comparison guide reveals what each provider type really offers, their hidden agendas, and most importantly, how to choose an FX provider that matches your company’s specific situation—whether you’re running a £5M startup or a £500M enterprise. FX Provider Comparison: The Five Types of FX Providers (Reality Check) 1. Banks: The Incumbent’s Paradox Best for: Large corporates (£500M+ turnover), companies needing credit facilities, complex structured products The Reality: Even for £100M turnover businesses, banks offer surprisingly basic transactional services. You’ll get access to a platform with competitive spreads, but that’s where the value ends. Despite their resources, banks treat FX as a profit centre, subsidising other services—meaning you’re the product. Pros: Cons: Hidden Truth: “Banks use FX margins to subsidise ‘free’ business accounts—if you’re an SME paying 2-3% spreads, you’re funding your own ‘free’ banking through hidden FX costs. Those free accounts aren’t free; they’re FX-subsidised.” Red Flag: If they can’t show you live rates online or quote you spreads in real-time, you’re overpaying. If they’re pushing structured products as “risk management,” run. 2. FX Brokers: The Wild West Best for: Price-sensitive businesses with simple spot/forward needs, traders comfortable managing their own risk The Reality: The sector contains some legitimate players, but its reputation is deservedly tarnished by cowboys and sharks. While they’ll beat bank pricing, many gladly sneak hidden fees on forwards or when leaving FX orders. Since their commission comes directly from your trading volume, the relationship is always about generating more trades, not managing your risk. Pros: Cons: Hidden Truth: “Commission-driven model means they want you to trade more, not smarter. They’re farming you for volume.” Red Flag: If they call about “market opportunities” weekly or send constant market volatility alerts urging action, they’re treating you as a revenue source, not a client. 3. Fintechs (Wise/Airwallex vs Traditional FX): The Digital Disruptors Best for: Small businesses (<£10M FX annually), payment-focused needs, cost-conscious startups The Reality: When comparing Wise vs traditional FX providers, fintechs sell technology, not expertise. They’ve revolutionised payments with transparency and user experience, but if your growing business needs help managing cash flows or FX risks, their limitations become clear. Great for payments, dangerous for risk management. Pros: Cons: Hidden Truth: “Great for payments, but leaving you exposed on risk management. If FX volatility can impact your margins, you’ve outgrown them.” Red Flag: If you’re starting to notice FX gains & losses appearing in your income statement, you need risk management, which demands expertise—and that means upgrading to other providers. Fintechs can’t help you here. 4. Specialist Treasury Firms: The Consultants Best for: Mid-to-large companies needing expertise, complex hedging strategies, and one-off treasury projects The Reality: These firms may provide genuine expertise but at a steep price—typically starting at £10-50K per engagement, often reaching six figures for comprehensive projects. Their project-based model works for specific initiatives but becomes expensive and impractical for ongoing needs. When your business evolves, you’ll need to re-engage them, creating discontinuity in your risk management. Crucially, if you’re a small business trying to access consultants on the cheap, you’ll get junior analysts delivering boilerplate advice, not the senior expertise you actually need. Pros: Cons: Hidden Truth: “The only model truly aligned with reducing your risk, but the economics don’t work for SMEs. Pay their minimum and get templated advice from juniors; pay properly and spend six figures. There’s no middle ground.” Red Flag: If they don’t start by understanding your business model, cash conversion cycle, and risk tolerance, they’re just expensive brokers. 5. The Hybrid Model (HedgeFlows): Best FX Provider for SMEs Best for: Growing SMEs (£5-100M turnover), businesses needing expertise without enterprise costs The Reality: A new category has emerged as the best FX provider for SMEs, combining fintech efficiency with treasury expertise. Companies like HedgeFlows bring institutional-level risk management tools and knowledge to smaller businesses at accessible price points. This model solves the expertise gap without the £50K consulting fees. Pros: Cons: Hidden Truth: “The only model bringing institutional-level FX risk management to SMEs—what large corporates have had for decades, now accessible to growing businesses.” Red Flag: Make sure they have actual treasury expertise, not just good technology. Ask about their team’s background in risk management. The Comparison Table: 10 Key Factors Factor Banks FX Brokers Fintechs Specialist Treasury Hybrid (HedgeFlows) SME FX Margins 2-3% 0.5-1% 0.4-0.8% n/a 0.2-0.5% Corporate FX Margins 0.1% 0.2-0.5% N/A n/a 0.2-0.5% Minimum Volume None (but poor rates <£10M) £100K None £10M+ £500K Hedging Products Full range Basic forwards None Full range Core hedging suite Risk Advisory None (unless buying products) Limited/Sales-driven None Comprehensive Included Technology/UX Poor Average Excellent Varies Excellent Execution Speed Slow Fast Instant Average Fast Transparency Opaque Semi-transparent Fully transparent Transparent Fully transparent Service Model Transactional Sales-focused Self-service Consultative Tech-enabled advisory Hidden Fees Risk High High Low Low Low Best For Revenue £500M+ £1-50M <£10M £50M+ £5-100M How to Choose an FX Provider: The Decision Matrix FX Provider for SME – Your Situation → Right Provider <£1M FX annually → Wise/Revolut £1-10M FX, stable/predictable → FX Broker £5-100M FX, growing/complex → Hybrid Platform (HedgeFlows) £50M+ FX, complex needs → Specialist Treasury £500M+, multinational → Bank + Specialist The Questions Every CFO Should Ask Providers During Provider Evaluation, Ask: Before Starting Your Search, Ask Yourself: The Uncomfortable Truth About FX Providers Every provider type has a business model that may conflict with your interests: The key is choosing the…