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Kyriba on CNBC: Strong Dollar’s Massive Impact to Corporate Earnings

October 3, 2022

In a recent interview on CNBC Worldwide Exchange with Dominic Chu, senior markets correspondent, Kyriba’s Senior Strategist Wolfgang Koester reacted to questions about the state of the market today for multinational CEOs and CFOs, given the massive impact a strong US dollar is having on corporate earnings. The dollar’s strength is at a 20 year high, and US corporates doing business overseas are reporting billions of dollars in revenue forecast impacts.

Questions from Mr. Chu focused on what investors should worry about and where CFOs can better invest in their company’s ability to protect EPS.

“What corporations are doing under the headline of Enterprise Liquidity Management is they are looking how to best manage currency risk in an environment that continues to be a race to the top on currencies,” said Koester.

Mr. Koester underscores the need for greater identification of these increasingly volatile FX risks, higher costs associated with analytics, and how to maximize the benefits and effectiveness in hedging currencies.
Companies that are not hedging properly and without the proper analytics will see much wider swings in revenue. Subsequently, these companies will experience negative impacts to EPS related to a stronger dollar.

For more information, watch the full interview on CNBC and check out the related resources below.