From Yahoo Finance: 2025-03-28 12:50:00

In today’s global economy, businesses are operating across borders, increasing exposure to currency swings. Geopolitics, like Trump’s tariffs, are driving recent volatility. Companies like Apple and Microsoft are already feeling the impact on their bottom lines. Small and medium-sized enterprises (SMEs) are particularly vulnerable and should consider hedging strategies to protect themselves.

Air Canada and other corporates are leading the way in hedging against currency volatility caused by tariffs and trade wars. Hedging is vital for all businesses to weather the storm of currency swings. SMEs especially need to secure stability, accurate forecasting, and competitiveness through proactive risk management.

Banks have traditionally been the go-to for FX management, but SMEs often face hidden costs and operational challenges. Fintechs are stepping in to provide comprehensive and cost-effective solutions. These digital platforms offer real-time rates, transparent pricing, and multi-currency capabilities, simplifying FX operations and reducing costs for SMEs.

As tariff tensions and currency swings continue, SMEs must adopt an FX-first strategy to navigate the storm. Beyond hedging, businesses need seamless access to multiple currencies and efficient cross-border payment solutions to maintain liquidity and support growth. With the right tools and strategies in place, SMEs can better manage their cash flow and stay competitive in the global market.

Read more: How SMEs can navigate the FX storm