Kyriba Releases Quarterly Currency Impact Report, Revealing a Sharp Increase in FX Headwinds

North American companies reported a $8.38 billion impact in Q1 2024, a 219% increase from Q4 2023

19% of multinationals reported currency impacts with North American organizations experiencing the most negative impact in the first quarter of 2024

European companies reported $2.72 billion in FX-related losses, 65.2% less than the previous quarter

Kyriba, a global leader in liquidity performance, announced today that it has issued its Q1 2024 Currency Impact Report (CIR). The report, which analyzes the effects of foreign exchange (FX) rates on international corporate earnings, highlighted a significant 44.6% increase in negative impacts from currency movements, totaling $9.83 billion among North American and European companies. The CIR analyzes the earnings calls of 1,700 publicly traded North American and European companies, offering continued insight into the influence of foreign exchange movements on global organizational revenues, earnings, and cash flows.

“Currency volatility continues to pose a substantial risk to multinational corporations, significantly impacting their bottom lines,” said Melissa Di Donato, Chair and CEO at Kyriba. “Our latest report underscores the heightened challenges companies faced in the first quarter of 2024. More importantly, it reinforces the critical need for strategic currency risk management and the use of advanced predictive analytics to mitigate these risks and optimize liquidity performance.”

Key insights from the June 2024 Currency Impact Report:

• Of the 1,700 companies surveyed, 11.5% reported discernible negative and positive FX impacts, which collectively amounted to a staggering $12.55 billion. Out of this, $9.83 billion were categorized as headwinds, while $2.72 billion were seen as tailwinds.
• North American companies witnessed a striking 219% increase in FX impact, reporting $8.38 billion in Q1 2024, compared to the last quarter of 2023.
• European companies have also felt the sting of currency fluctuations, albeit in a contrasting trend to their North American counterparts. European companies reported $2.72 billion in FX-related losses during Q1 2024, marking a 65.2% decrease from the previous quarter.
• The Argentinian peso and the US dollar were most frequently cited as impactful currencies by North American and European firms, respectively. The Turkish lira was noted for its high volatility during the quarter.
• The Top 5 North American industries impacted include: Healthcare Equipment and Supplies, Machinery, Trading, Distribution, Life Sciences Tools & Services, Electronic Equipment, Instruments & Components, and Chemicals.

“The early 2024 trends are showing an unexpected strength in the US dollar, thus forecasting a rise in FX headwinds for US corporations for the second half of 2024,” said Andy Gage, SVP of FX solutions and Advisory at Kyriba. “Inflation, coupled with this strong dollar, is putting additional pressure on global economic stability, making it imperative for companies to employ robust risk management strategies.”

To learn more about FX impacts to specific industries and which currencies were most impactful to multinationals, download the June 2024 Kyriba Currency Impact Report here.

About Kyriba Corp.

Kyriba is a global leader in liquidity performance that empowers CFOs, Treasurers and IT leaders to connect, protect, forecast and optimize their liquidity. As a secure and scalable SaaS solution, Kyriba brings intelligence and financial automation that enables companies and banks of all sizes to improve their financial performance and increase operational efficiency. Kyriba’s real-time data and AI-empowered tools empower its close to 3,000 customers worldwide to quantify exposures, project cash and liquidity, and take action to protect balance sheets, income statements and cash flows. Kyriba manages more than 35 billion bank transactions and $15 trillion in payments annually and gives customers complete visibility and actionability, so they can optimize and fully harness liquidity across the enterprise and outperform their business strategy.

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