Jackie Bowie on Bloomberg discussing FX hedging as costs rise

Summary

Jackie Bowie, Head of EMEA at Chatham Financial, shared her perspective on the evolving foreign exchange (FX) risk landscape in a recent Bloomberg News article, as North American companies ramp up their hedging strategies in response to heightened currency volatility and rising hedge costs.

The article, titled “US, Canadian Companies Boost FX Hedges as Costs Surge,” highlights findings from a MillTech survey of 250 senior finance leaders across the U.S. and Canada. Over 90% of respondents reported actively hedging FX risk — up from 80% two years ago — amid a turbulent market environment shaped by trade disruptions and a weakening U.S. dollar.

Bowie emphasized a shift in corporate mindset toward longer-term risk management.

“There’s a broader view that U.S. dollar resilience and ‘U.S. exceptionalism’ are weaker than before. Our clients aren’t rushing to hedge for short-term weakness, but they are more concerned about the long-term picture.”

— Jackie Bowie on Bloomberg

This sentiment aligns with the survey’s findings, which revealed that more than two-thirds of companies plan to extend the duration of their hedges, even as the average tenor remains around five months. Many firms are also adapting their operational strategies, with nearly 90% reporting significant changes to supply chains and sourcing practices.

As companies navigate this complex environment, Chatham Financial continues to support clients with tailored risk management strategies that address both immediate challenges and long-term objectives.

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