2025 Insight & Resource Guide

Managing Currency Risk in Global Business

2025 Insight & Resource Guide

Prepared for Unicorn Currencies – May 2025
Executive Summary

Volatility is back. After a decade-low VXY reading in 2021, 2024–25 has delivered the -8% JPY slide, oil-driven NOK swings and the highest CNY-USD daily range since 2016. For CFOs, currency exposure is now the largest unbudgeted cost.

Unicorn Currencies can help businesses hedge operational FX, lock profit margins and gain real-time visibility via its multi-currency accounts and on-platform forward contracts.

Five Pillars of Currency-Risk Management in 2025

Strategic framework for managing foreign exchange risk in today's volatile environment.

Pillar #1
Identify & Measure exposure

What's new in 2025:

AI-driven cash-flow forecasting tied to ERP invoices; granular VaR dashboards

Unicorn Currencies Solution:

UC API pulls invoices, flags currency mismatch and calculates daily VaR per currency bucket.

Pillar #2
Natural Hedges

What's new in 2025:

Supply-chain reshoring causes mismatch gaps; multi-currency wallets allow "self-hedge"

Unicorn Currencies Solution:

Hold receivables in 40+ currencies; offset payables without converting.

Pillar #3
Financial Hedging

What's new in 2025:

SME forward-contract uptake grew 38% YoY (AFTE 2025 survey)

Unicorn Currencies Solution:

UC offers forwards & market orders from £5k, margin as low as 0.12%.

Pillar #4
Policy & Governance

What's new in 2025:

IFRS 7 amendments require granular FX-risk disclosures from Jan 2026

Unicorn Currencies Solution:

UC audit reports + API export align to new disclosure templates.

Pillar #5
Real-Time Execution

What's new in 2025:

T-15-minute quote-to-book cycle forces treasurers to automate

Unicorn Currencies Solution:

UC webhooks + GraphQL auto-exec hedges when tolerance breached.

Curated Resources (2024-25)

Essential reading and research from leading industry sources for currency risk management.

AFTE FX Risk Management Survey 2025
Adoption stats on hedging tools
BIS Quarterly Review (Q1 2025)
Volatility index trends and central-bank policy shifts
IFRS 7 Exposure Draft 2024
Upcoming disclosure requirements for currency risk
McKinsey Global Treasury Benchmark 2025
Cost of hedging benchmarks across sectors
Reuters FX Polls
Consensus forecasts for G10 & EM pairs (updated monthly)

Practical Checklist for Finance Teams

Essential steps to implement effective currency risk management in your organization.

Map exposures by transaction, translation and economic risk.

Set board-approved hedge ratios (e.g. 75% of 3-month cash-flows).

Use multi-currency accounts to delay conversion until rates improve.

Deploy forwards, options, collars where natural hedging is insufficient.

Monitor counter-party risk—choose FCA-authorised EMIs with safeguarded funds.

Tip:

Unicorn Currencies' dashboard lets you set rate alerts and auto-book hedges if GBP-USD moves ±1% intraday.

FAQ – Currency Risk & Unicorn Currencies

Frequently asked questions about currency risk management and how Unicorn Currencies can help.

How does Unicorn Currencies help identify my FX exposure?

Our API ingests invoice data, categorises payables/receivables by currency and surfaces a live exposure report.

Can I lock today's rate for a future payment?

Yes. You can book forward contracts up to 18 months with as little as £5k notional.

What is the cost of hedging with Unicorn Currencies?

Forward points are based on the interbank swap curve plus a transparent 0.12%–0.30% margin, displayed before you confirm.

Are my hedges compliant with IFRS 7 reporting?

We export hedge documentation and effectiveness tests that slot directly into the new 2026 IFRS reporting format.

Do you offer options or only forwards?

For Enterprise tier, we broker FX options via regulated liquidity providers; forwards and market orders are available to all tiers.

Ready to manage your currency risk more effectively?

Join Unicorn Currencies and access the tools you need to hedge operational FX, lock profit margins, and gain real-time visibility into your currency exposure.