F/X Exposure Hit APAC Corporates (Asset Benchmark Research)
A survey of 1,123 corporate treasurers by Asset Benchmark Research found that nearly half of all corporates in Southeast Asia (48%) state that bottom line performance has been impacted negatively by FX exposure in 2015.
Southeast Asian corporates are the region’s most exposed companies to FX exposure, suffering from illiquid hedging markets, low penetration of their home currencies in international trade and their (growing) export focus. Overall in Asia, 39% of corporate treasurers and CFOs had to communicate hits to profitability due to FX exposure, arising from transactional, translational and/or economic exposure to currencies.
The negative impact was lowest among Chinese enterprises, likely a reflection of the higher predictability of the exchange rate (on most days) and the growing use of the renminbi in international trade finance.
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- The Impact of Emerging Market Currencies on Corporate America’s Earnings (Forbes)