2016 Global Foreign Exchange Survey: Continued Evolution

This report from Deloitte talks about the impact of Foreign Exchange (FX) on businesses. The report is based on a global survey that provides insight into the challenges corporations encounter when managing currency risk and possible causes. 

Key findings

  1. Lack of visibility into FX exposures and reliable forecasts and the manual nature of exposure quantification is a challenge for nearly 60% of respondents. 
  2. Boards do not always receive sufficient information in relation to FX risk.
  3. Both central and decentralized FX models have similar benefits and challenges.
  4. Hedging strategies are primarily centered around monetary balance sheet FX items and FX cash flows. 
  5. Technology is recognized as ain important enabler to achieve efficient and effective processes. 



  • Executive summary
  • Survey demographics
  • Treasurers face various challenges in managing FX risk
  • Lack of visibility driven by complexity and inadequate investment in automation
  • Board visibility of FX exposures
  • Opportunity to improve reporting to the board
  • Both centralized and decentralized models work
  • Hedging objectives focus on reducing income statement volatility
  • Primary hedging strategies vary by industry
  • Missed opportunities in natural hedges
  • The majority of derivatives hedge transaction exposures
  • Hedging transaction exposures
  • Use of technology to manage FX risks
  • Accounting treatment influencing hedging strategies 

© 2016 Deloitte LLP. All rights reserved

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