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…
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Treasury Contrarian View: Should Treasury Operate Like a Startup?
Most treasury teams operate like well-oiled machines—structured, risk-averse, and highly controlled. But here’s a bold thought: What if treasury operated more like a startup—agile, experimental, and focused on rapid innovation? Could adopting a startup mindset make treasury more impactful, or would it undermine the stability companies rely on? The Case for a Startup Mindset in Treasury The Case Against a Startup Mindset A Balanced Model: Entrepreneurial but Controlled Treasury doesn’t need to throw out governance to benefit from startup thinking. Instead, it can: Let’s Discuss We’ll share perspectives from treasurers and innovators who’ve experimented with “startup-style” treasury—add your view to the conversation! COMMENTS Nena Koronidi, Treasury Masterminds Board Member, comments: Absolutely. I see every treasury role as an opportunity to re-engineer processes, eliminate inefficiencies, and bring in fresh, innovative solutions. Protecting liquidity and managing risk will always come first, but that doesn’t mean we can’t experiment in smart, controlled ways. By working closely with IT, fintechs, and banking partners, we can pilot automation, APIs, and AI tools that not only speed up decision-making but also strengthen governance. Done right, innovation doesn’t weaken resilience; it makes it stronger.For me, it’s about being entrepreneurial, but with the discipline treasury is known for. Benjamin Defays, Treasury Masterminds Board Member, comments: Yes, for Startup mentality, not for a startup methodology. It is a question of professional survival and sustainability of the function to have this entrepreneurial and transformational mindset, and it is what we are all looking for when hiring talent. However, in terms of methodology, it’d be a killer: we need to steer priorities, channel energy in the right direction, and ensure we keep a proper focus to achieve results in this manner. Lee-Ann Perkins, Treasury Masterminds Board Member, comments: A startup style for Treasury is essential in a rapidly changing world. We need to be flexible, proactive problem solvers with the goal of enhancing efficiency and driving growth. Our mandate is to control the risks and remain compliant at all times, and we can still achieve this by embracing innovation and leveraging cutting-edge tools for success. Treasurers should remain poised to redefine their roles through transformation. Adeyinka Ogunnubi, Treasury Masterminds Board Member, comments: Interesting topic. I often joke with my treasury team that the best treasurer is the “predictably boring treasurer. 😂 I say that with context. Back here in Nigeria, we suffered significant distortions in the FX market over the period of 4 years, ranging from severe FX liquidity issues to restrictions in trade finance. In the process, many corporate treasurers defined “Agility” as the ability to think outside the box (Start-up Mentality), which led them to explore and develop creative alternative measures of sourcing FX and doing trades (Start-up Methodology). Some of these measures created serious compliance issues and elevated risk for the organisation. Bottom line, the “old” predictable process of bidding, two quotes, and order books was jettisoned for abnormal ways which, while agile, exciting, and adventurous, were fraught with risks. Predictability of process gave way to uncertainty, complexity, and volatility. A return to “normality” (which is what is the case now) has seen treasurers now scramble to get used to a structured, predictable model. I absolutely agree with Benjamin Defays, yes for start-up mentality, but no for start-up methodology. 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 payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information.
How To Ready Your Team For Change
This article is written by Palm The disparity between technology advancements in the home and in the treasury world are incomprehensible. The innovation is so seamless in our personal lives we don’t even consider what is powering the tools behind Siri, ChatGPT and our Spotify algorithms. At work however, the mention of AI or machine learning gets us excited, without really a consideration of how these tools can be embedded into our operations. The blog this week is about how we can re-frame this technology, and ready our teams to move away from their manual daily processes and into a world where they come to expect the same level of automation of checking out with Apple Pay on their phone, as they do entering manual payments into online bank portals, which have been accessed with a bank key fob. Which is actually their 5th key fob in 2 years as it is constantly being lost or locked with incorrect pin attempts. The focus this week is on change management and how we can support our teams through these periods of change and start adopting technologies in the workplace to make their daily lives easier. Change Management Managing change is hard. There is a certain cathartic quality to working through tried and tested processes, taking time and making sure all the I’s are dotted and the T’s are crossed. The brain can relax by going through the motions of preparing the daily positions and executing the cash management strategy. Moving from this, to an unknown automated process seems like an unnecessary stress. If it isn’t broken then don’t fix it, right? Although remember that feeling when you first tapped our contactless card. Did it work? What happens if someone steals my card, they could empty my account? There was a lot of doubt and skepticism. A few years down the line, it’s rare to enter a card pin at all. How can we overcome this initial resistance to get to the nirvana ending? Here are 10 tried and tested steps to work through for a successful change management strategy. Fail to plan, plan to fail. The first step to managing a successful change is to plan for it and the eventual outcomes. This is not limited to only planning the project but also and the teams response to it, and the possible pitfalls. A simple project management template is a good start, but consider the wider impact of the change. Make sure you have enough time to work through each of the stages thoroughly to avoid a half-baked solution which doesn’t deliver on the benefits touted at the start of the project. Successful change requires you to have a certain level of influence in the business. You need to be someone the team trusts to deliver the solution to gain their support and buy in. There will always be those individuals who do not want the change. Convincing them this change will help them in the long run, may not be possible. We have all worked with such people. However, making sure their negativity does not overshadow the project is crucial. This involves proactively sharing successes in a wide forum, and having support from internal leaders who also share your vision and speak positively about the change. Sweeping conflict under the carpet never ends well. If you find there are those who are actively creating tension, either within the project team or in the wider business it is best to address this head on and find a mutual solution. Produce a clear plan to resolve the issue, and see it through. Those impacted by the change need to have a clear understanding of the project, why it is happening and how it will impact them personally. Being as transparent as possible will allow employee to envisage their world after the change is live. How their role and processes could be affected and what they need to do to prepare for these changes. In times of uncertainty people look up to their leaders for guidance, and you need to be ready to provide this and share your vision to bring them along for the ride. This may sound obvious, but often insufficient time is left for deep training on new solutions to make sure everyone is comfortable with the tools and how they work. Each person will have a different learning style, therefore delivering training sessions using different techniques can be hugely beneficial. Setting time for follow up sessions to gather questions and feedback once users are active in the system can also help fine tune the resources for future onboarding. Identify early adopters in the team and create a network of champions who are willing to share their excitement and enthusiasm for the project. In return, they become experts in the new system and are involved in the project management process. Spending time setting up critical KPIs which help measure the success of the project will help to keep stakeholders engaged as they can track the progress and adoption of the new solution. In addition, you may want to collect more informal, qualitative feedback from team members as a way to understand how the team are feeling about the changes. If the team feels progress is being made and they are being recognised for their involvement, they are more likely to remain engaged in the project and see it through to the end. Even in the most expertly executed project, there are opportunities to learn and improve. Run a retro session shortly after the conclusion of the project to both celebrate what went well but also find opportunity areas for improvement for the next project. Wrap Up Change management is as much about managing people through the change as it is about the solution itself. Hence why there are so many models and research papers written on the topic. However if we want to move our treasury teams into the new world of technology, we can’t shy away from big…
Stablecoins After the GENIUS Act: From Niche to Necessity for Treasurers?
From Treasury Masterminds When the GENIUS Act was introduced, the political narrative centered on making cryptocurrency easier for payments. What slipped under the radar: the massive surge in stablecoin adoption. In particular, USDC volumes spiked, showing that corporates and institutions didn’t just watch from the sidelines—they began using it. For years, stablecoins sat in a strange corner of finance: too “crypto” for corporates, too “fiat” for the crypto crowd. But the GENIUS Act may have tipped the balance. Regulatory clarity + easier on/off ramps = usage. Why Stablecoins Are Gaining Traction The adoption data doesn’t lie: stablecoins—especially USDC—are no longer a niche experiment. Use Cases for Treasurers Let’s get practical. What could a corporate treasurer actually do with stablecoins? Can Treasurers Still Ignore Stablecoins? Short answer: No. Even if you’re not ready to jump in, the momentum is undeniable. Waiting it out is like saying in 2005, “We’ll stick to fax, this email thing won’t last.” So treasurers face a choice:👉 Treat stablecoins as “noise” until clients and suppliers force the issue.👉 Or experiment early, build policies, and be ready when adoption hits your business. Our 2 Cents Stablecoins aren’t replacing fiat or traditional FX anytime soon. But they’re carving out a role in payments, liquidity, and even investment. Treasurers who explore the rails now will be better positioned when stablecoins stop being “alternative” and start being expected. The GENIUS Act may have been the starting gun. The question is: how long can corporate treasury afford to stand at the starting line? 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 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.
Measuring Currency Risks – What is Behind CFaR and its Cousins
This article is written by HedgeFlows Quantifying FX risk is one of the most challenging aspects of foreign exchange risk management. To determine whether managing currency risk is worthwhile, it’s essential to understand exactly what you’re protecting against. This knowledge is key to making informed decisions. While large multinational corporations often rely on concepts like Value at Risk (VaR), Cash Flow at Risk (CFaR), or Earnings at Risk (EaR) through their dedicated treasury or risk departments, these tools are less familiar and uncommon for smaller businesses with leaner finance teams. This article dives into the theory behind risk metrics and explains how to use them. Making sense of randomness Measuring FX risks is based on the notion that exchange rates move randomly over time, and the changes in the value of currencies over a specific period of time have different likelihoods. This likelihood is distributed in a manner close to a normal distribution. For example, the graph below shows the historical distribution of 90-day moves of the Pound Sterling vs the US Dollar (grey) and its modelled distribution, which is normally distributed. As one can see, most potential outcomes are small moves clustered around zero, but in rare outcomes, the exchange rate moved more than 20% over 90 days. Asking the right question So, what is the right measure to use in order to quantify FX risks in a small business? It depends on what you want and what you’re trying to answer. In FX risk management, there is a big difference between asking the question, “What is the maximum I could lose due to foreign exchange?” and “What could I potentially lose on foreign exchange?” The former question emphasises the risks posed by rare but often catastrophic events – situations that occur infrequently yet have significant consequences when they do. These are the kinds of events that make headlines and can push businesses to the brink of collapse. Take, for instance, the aftermath of the Brexit vote, which triggered a sharp decline in the value of the Pound Sterling, or the more recent crisis during Liz Truss’ government, which temporarily plunged the Pound to multi-decade lows. Such events are notoriously hard to predict and, as a result, are not typically reflected in prevailing exchange rates. When they do occur, however, they can cause sudden and extreme market volatility, leading to lasting financial damage. Tools like Value-at-Risk, Cashflows-at-Risk, or Earnings-at-Risk are specifically designed to measure and account for these risks. However, because these moves are so rare, many businesses often ignore them until they have a real impact and become a topic of purposeful discussion. Hence, while knowing the maximum potential loss is essential, many CFOs are often more interested in more likely potential outcomes that can still have an impact on their business. The stability of cash flows or profit margins is often an implicit or explicit hedging objective, and even a 5% FX move can often have a sizeable impact on one’s cash flows. Because moves of such magnitude are a lot more likely to happen, it is not surprising that the jump in likelihood often makes such potential moves a lot more “real” to CFOs and their teams, and this is easier to relate to and thus manage. For example, as shown on the graph below, the likelihood of an FX move of 4% or greater is 20 times higher (probability of 20%) than that of 14.5% (probability of 1%). Different risks but the same solution Select the risk metric that best aligns with your business objectives and feels most intuitive to your needs. Fortunately, for most companies, this decision won’t affect the overall solution. FX forwards continue to be the preferred hedging instrument. You may have noticed that we refer to more minor, more probable outcomes as a move of “X% or greater.” This phrasing reflects that these outcomes represent not a specific point but a range of possibilities (losses) that extend beyond that threshold. If you choose to mitigate these risks, you will also reduce the risks of larger, less probable outcomes. If, for example, you decide to hedge 50% of your exposure with FX forwards, the potential losses will halve, no matter which risk metric you choose. 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.
Inside the Minds of Top CFOs: Tips for Building Resilient Finance Teams in High-growth Companies
This article is a contribution from one of our content partners, Bound Fast-growing companies mean fast-moving demands, and no one feels that more than the finance team. At our recent CFO Breakfast for Growth, we brought together a panel of three seasoned CFOs to share their strategies for handling the financial and operational pressures that come with scaling. Meet the experts From keeping cash flow under control to navigating tricky board dynamics, here’s what these experts had to say about building teams that thrive under pressure: 1. Build a team that complements you The CFO role is evolving, and no one can do it alone. Our panellists emphasised hiring team members who excel where you don’t, especially in technical and analytical areas. This approach allows CFOs to focus on strategy, knowing that the day-to-day is in good hands. Pro tip: Identify where you add the most value and hire for the gaps. A balanced team is essential for navigating high-growth challenges with confidence. 2. Keep cash flow management tight and transparent Cash flow was a hot topic…no surprises in a room full of CFOs! All panellists agreed: daily visibility into cash flow is non-negotiable, along with strong collection processes and clean balance sheets. With investors scrutinising financial transparency at every stage – often earlier than you’d expect– robust, clear records are essential. Pro tip: Take a proactive approach to cash flow. Maintain investor-ready records and anticipate their questions – this will only strengthen your negotiating position. 3. Aim for fewer, larger fundraising rounds If you’re in a high-growth company, the panellists recommended minimising the frequency of fundraising rounds to reduce distractions. Larger rounds mean a longer runway, giving you room to focus on growth rather than constantly seeking investment. Pro tip: Where possible, opt for bigger rounds that support sustainable growth and keep the cap table lean. It’s a more efficient, powerful approach that reduces the operational impact of fundraising. 4. Stick to financial tools that flex with you Despite a range of new tech options, the panel agreed: nothing beats Excel (or Google Sheets) for its flexibility. Adaptable, powerful, and easily shareable, Excel remains a go-to for financial modelling in fast-changing environments. But AI tools are showing promise too, with banks using them for enhanced due diligence. Pro tip: Pick tools that provide adaptability for long-term planning, and explore AI options that could streamline reporting and data analysis. 5. Mastering board dynamics and cap table simplicity Strong board relationships were another hot topic. The panel’s advice? Consistent, clear communication about KPIs and performance to align different investor interests. They also noted that a simplified cap table can help keep everyone on the same page. Pro tip: Prioritise transparency with your board, and maintain a cap table structure that promotes alignment rather than division among shareholders. Always be prepared For CFOs leading high-growth companies, resilience is all about building a capable team, mastering cash flow, and aligning board dynamics. The insights from our panel offer a practical guide to managing these challenges with confidence and agility. Whether it’s integrating flexible financial tools, simplifying your cap table, or keeping cash flow processes rock-solid, these strategies will help you build a finance team that’s ready for anything. Recommended Reading 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. Notice: JavaScript is required for this content.
Atlar and HSBC Innovation Banking Collaborate to Support Fast-Scaling Companies Like Joint Customer Liberis
This is a press release from our partner, Atlar New integration gives companies like Liberis real-time visibility and control over treasury, directly within the Atlar platform Atlar and HSBC Innovation Banking UK have entered into a collaboration to support the treasury management needs of fast-growing and innovative companies. The partnership brings together HSBC Innovation Banking UK’s global banking infrastructure and Atlar’s modern treasury platform to streamline cash management, enhance visibility, and improve control for finance teams operating at scale. A connected, real-time treasury stack for high-growth companies Joint customers of HSBC Innovation Banking and Atlar benefit from a more connected, automated, and real-time treasury setup—fully integrated with modern ERP systems where needed. Going beyond a standard connection, this partnership unlocks a seamless solution powered by real-time APIs. Atlar’s API integration with HSBC Innovation allows customers to connect their accounts in minutes—accelerating onboarding and making treasury management more efficient. Key benefits include: Liberis: Automating treasury for an embedded finance pioneer One company already realising the value of this partnership is Liberis, a global embedded finance platform that provides personalised funding solutions to small businesses through its network of partners. With operations in Europe and North America, Liberis has funded over $2.5 billion to more than 60,000 small businesses since 2007. By connecting its HSBC accounts to Atlar, Liberis has gained real-time visibility across cash positions and streamlined key treasury workflows like payment runs and cash flow forecasting—freeing up its finance team to focus on strategic decision-making. The platform plays a central role in managing liquidity and ensuring control across entities. “With Atlar and HSBC Innovation Banking, we’ve built a treasury setup that gives us real-time visibility, better control, and the flexibility to support our growth across markets.” — Sean Fanning, Finance Director at Liberis “This collaboration brings together the best of both worlds: HSBC Innovation Banking’s global banking capabilities and Atlar’s modern treasury technology. Together, we’re helping fast-scaling companies automate manual processes and gain the visibility they need to scale with confidence.” — Joel Nordström, Co-founder and CEO at Atlar “At HSBC Innovation Banking UK, we work with some of the most ambitious and innovative companies in the world. Partnering with Atlar enables us to offer our joint customers a more seamless and efficient treasury experience, with real-time connectivity and automation at its core.” — David McHenry, Head of Treasury and Trade Solutions at HSBC Innovation Banking UK The collaboration reflects a shared commitment to supporting businesses with the tools and infrastructure needed to operate efficiently and grow with confidence. Together, Atlar and HSBC Innovation Banking are helping finance teams navigate increasing complexity and take control of their treasury. For more information about how Atlar works with HSBC Innovation Banking UK, get in touch. About Atlar Atlar is the modern treasury management system for the new economy — giving scaling finance teams real-time visibility and control through a single platform connected to their banks and ERPs. By managing these connections, Atlar accelerates time-to-value and simplifies complex financial infrastructure. Ambitious, tech-driven companies like Forto, GetYourGuide, Mangopay, Storytel, Tide, and Zilch rely on Atlar to automate cash management, payments, and forecasting through powerful, user-friendly tools. Backed by world-leading investors Index Ventures and General Catalyst, Atlar is also a preferred partner of industry leaders, including NetSuite, Citi, and Nordea. About HSBC Innovation Banking HSBC Innovation Banking provides commercial banking services, expertise, and insights to the technology, life science and healthcare, private equity, and venture capital industries. HSBC Innovation Bank Limited is a subsidiary of HSBC Group, benefiting from its stability, strong credit rating, and international reach to help fuel its growth. Also Read
The 4 E’s of Micro-Hedging Programs
This article is written by Kantox This blog explains the nuts and bolts of micro-hedging programs and the benefits they provide to corporations. By using micro-hedging programs —either on a standalone basis or in combination with other programs—, finance teams are in a unique position to: So let’s dive in and explain how companies can profit from these four E’s. Eliminate FX risk. Enhance control. Earn more. Embrace currencies. Micro-hedging programs are API-based software solutions that allow corporate treasury teams to effectively hedge their exposure to currency risk —whatever the number of transactions— with a high degree of automation, visibility, and control. They are emerging as a key element in most corporate FX hedging strategies. The versatility and ease-of-use of micro-hedging programs, even when many currency pairs are involved, are proving themselves a must-have in different setups: The first “E”: eliminate currency risk At first sight, the notion that currency risk can be removed with great precision, even when many transactions in different currency pairs are processed, may seem a bit outlandish. To understand how micro-hedging works, the notion of market monitoring plays a key role. Thanks to API connectivity, stop-loss and take-profits are set around the FX rate at which a piece of exposure known as an entry —a firm order or an invoice— is received from company systems (ERP, TMS, others). As long as the FX rate trades inside this corridor, new entries are accumulated into positions. Because each entry arrives at a different moment, and therefore at a different exchange rate, the system needs to automatically calculate the weighted average exchange rate. When either of the boundaries of the range is hit, the position is automatically hedged. From the FX risk management point of view, the benefits of this procedure include: But what about hedging precision? Here’s precisely the point. When the drill is performed during sufficiently long periods of time, something interesting happens: “Over time, the stop-loss and take-profit orders tend to offset each, resulting in fluctuations around a central point. While financial time series exhibit skewness and other complexities, the overall risk typically decreases as the process unfolds” — Andrea Perissinotto, FX Data Analyst Team Lead, Kantox And that’s how micro-hedging virtually eliminates FX risk, either in the context of transaction risk or in terms of accounting risk. The second “E”: enhance control In our blog Debunking 4 Currency Management Myths: Protecting Profit Margins in 2025, we discussed some myths surrounding FX hedging. We could have included another one: the notion that automation weakens managers’ control over their hedging programs. In fact, the opposite happens. Currency Management Automation makes it possible for finance teams to strengthen control throughout the different phases of the FX workflow. To illustrate the point, treasurers can, at any point in time: When it comes to validating exposure data, treasurers can enforce a manual validation process according to different criteria in terms of amount, maturity, and currencies. Checkpoints are also available during the trade and post-trade phases. By way of example, Nutrien, a Canadian crop inputs provider, recently announced a $220m loss on FX derivatives transactions in Brazil: “We recorded a foreign exchange loss of $220 million on foreign currency derivatives in Brazil for the second quarter of 2024 […] we have a material weakness related to our controls over derivative contract authorization in Brazil” — Nutrien The company blames “an individual outside applicable internal policy and authority”. How do automated micro-hedging programs deal with this issue? From the outset, any derivatives transaction is numerically traced back to the corresponding exposure. A fraudulent trade will thus have a very hard time progressing from the ‘pre-trade’ to the ‘trade’ phase. Traceability and control Control is also enhanced by the traceability feature of micro-hedging programs. Across the journey from entry to position, to conditional order, to operation, and to payment, each element has its own unique reference number. In addition, payments carry the operation reference within their SWIFT message, allowing funds to be traced throughout the entire payment process. Whenever a position is hedged, it is possible to trace it back to the original entries, including the exchange rate. This is called end-to-end traceability. Among other control-related tasks, it makes it possible to: The third “E”: earn more The third “E” of micro-hedging programs can be illustrated with a simple proposition: improve profit margins by always contracting in the cheapest currency. With currency risk under control, managers avoid the misplaced temptation of buying directly in their firm’s own currency. The truth is that the underlying FX risk never goes away — it is merely transferred onto suppliers, who then apply markups to protect themselves from the underlying risk. By removing this friction, markups are sidestepped, and contracting costs are reduced. This example from the Travel industry illustrates the point: (*) Note that the margin increases to 5.5% by using the forward rate of 0.9730 instead. Forward points are favourable because —as interbank interest rates are higher in the U.S. than in Europe— the exchange rate translates into a higher forward EUR value, compared to spot. This gain can be used to reduce contracting costs. The fourth “E”: embrace currencies The fourth “E” of micro-hedging programs —embrace currencies— flows from the previous three. With FX risk under control, enhanced control over the workflow, and supplier markups out of the way, managers can confidently sell in more currencies. Thanks to Multi-Dealer Platforms such as 360T, to which micro-hedging programs are connected, treasurers can execute trades —in favourable liquidity conditions— in the currencies of a number of small, but well-managed economies: SEK, NOK, CAD, AUD, NZD, SGD, and KRW. A recent Amadeus survey about consumers’ attitudes shows: For firms with international operations, the conclusion is simple: you should sell in the currency of your customers. Some of the benefits include: This is happening already. A Bloomberg News article shows evidence that currency managers are sidestepping USD to conduct business in other currencies. French firms Saint-Gobain, Bouygues Construction, Veolia, and Neoven are increasing…
Visa Exits U.S. Open Banking — What Corporate Treasurers Should Know
From Treasury Masterminds 1. Recent Developments: Visa Shutters U.S. Open Banking Unit In late August 2025, payments giant Visa decided to shut down its open banking operations in the United States. The unit had offered fintechs streamlined access to bank account data, helping with onboarding and transfers. However, heightened disputes between banks and fintech firms over data access fees ultimately prompted this retreat. Visa has instead shifted its focus toward Europe and Latin America, where regulatory frameworks mandate data sharing with authorized entities. In the U.S., the Consumer Financial Protection Bureau (CFPB) is revising regulations to strengthen consumer control over financial data sharing, based on Section 1033 of the Dodd-Frank Act. UPCOMING PODCAST Join us for “From Treasurer to TMS Trailblazer” with Quique Fernandez of Embat and discover how treasury leaders can shape the future of tech. Click below to register now and attend! 2. U.S. vs. EU: Open Banking Regimes in Contrast Europe (EU and UK) United States 3. Section for Treasurers: Practical Implications For corporate treasurers, these shifts hold tangible implications: Access & Integration Cost & Negotiation Dynamics Regulatory Compliance & Risk Strategic Impacts 4. Data: The Real Gold of Open Banking At its core, open banking isn’t just about APIs, payments, or fintech connectivity — it’s about data. Without reliable, high-quality data, open banking loses much of its value. For corporate treasurers, this means the real competitive advantage lies in how well you manage and leverage data flows. Those who invest in connectivity and ensure their internal data is structured, accurate, and ready will be best placed to extract value from open banking — regardless of whether the system leans toward monetization (U.S.) or mandated sharing (EU). 5. Conclusion Visa’s exit from U.S. open banking underscores the growing tension between banks and fintechs. The U.S. remains in a transitional phase, with new rules on the horizon but heavy pushback from incumbents. Europe, on the other hand, has a mature framework in place and is expanding into broader open finance models. Key takeaway for treasurers: If you operate in Europe, open banking already offers tangible opportunities for innovation and efficiency. If you’re focused on the U.S., prepare for a longer journey — monitor CFPB developments closely, ensure your treasury systems are flexible, and be ready to adapt as the landscape evolves. 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 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.