Boom for Banks as M&A and Pandemic Boost Corporate FX Needs

Boom for Banks as M&A and Pandemic Boost Corporate FX Needs
Arrangement of various world currencies including Chinese yuan, U.S. dollar, Euro, British pound, pictured on Jan. 25, 2011. Kacper Pempel/Illustration/Reuters
Reuters
Updated:

LONDON—A boom in corporate dealmaking, surging input costs, and a focus on short-term cash flows in the pandemic have sent companies rushing to hedge their currency exposures this year, giving a boost to banks that sell foreign exchange products.

Corporate treasurers say the pandemic, which sent revenues tanking in 2020 before this year’s sharp rebound, has encouraged many to hedge currency risks more frequently.