iBanFirst reports a remarkable 97% increase in FX risk hedging deals for Romanian companies in 2023 amid global economic uncertainties, emphasizing the pivotal role of risk management solutions, with expectations for a further reinforcement this year. In 2023, risk management solutions accounted for 40% of iBanFirst’s revenues on the local market. As Romanian companies face ongoing challenges, the key factors that will continue to influence financial decision-making in 2024 include geopolitical stability, inflation management, economic resilience and strategic collaboration. iBanFirst, a leading global provider of foreign exchange and international payments for businesses, present in 10 European countries, reports a 97% increase in FX risk hedging deals for Romanian companies in 2023 amidst global economic uncertainty and concerns regarding currency market stability. As challenging economic circumstances continue, the global provider expects this surge in demand for robust risk management solutions to reinforce further this year. The main factors that will influence financial decision making are expected to remain geopolitical stability, inflation management, economic resilience and strategic collaboration. Faced with the effects of a geopolitical crisis, Romanian companies engaged in international trade, spanning industries such as agriculture, wholesale, IT and retail, strategically turned to hedging tools, particularly forward contracts. The adoption of forward contracts played a pivotal role in mitigating the impact of currency volatility on budgeted revenues and expenses, offering a secure mechanism to lock in foreign exchange rates for impending international payments. "The surge in demand for forward contracts is a testament to the critical role FX risk hedging played in shielding the profit margins of Romanian companies from the unpredictable fluctuations in currency values stemming from geopolitical uncertainties, particularly the ongoing crisis in Ukraine and the Middle East, and the inflation concerns in early 2023. These businesses displayed remarkable resilience, not only safeguarding their profit margins but actively expanding their global footprint”, said Alin Latu, Country Manager Romania at iBanFirst. In 2023, risk management solutions accounted for 40% of iBanFirst’s revenues on the local market, compared to an average of 50% in the region, being the most dynamic service on a regional level as well. The main foreign trade partners of Romanian companies using its services remain their counterparts from the EU, China, Turkey and the USA, with a significant increase in trade with China. “The heightened demand for our risk management solutions in Romania, Bulgaria and Hungary underscored the acute need for businesses from the region to adopt transparent and efficient currency risk management solutions. In the coming year, iBanFirst remains committed to empowering more Romanian companies to navigate currency fluctuations, facilitating seamless international transactions with foreign counterparties, and opening doors to a broader range of global opportunities”, said Johan Gabriels, Regional Director at iBanFirst. Looking ahead to 2024, the key factors that will impact financial strategies decision-making for Romanian companies according to iBanFirst include: Geopolitical Stability: Keeping a close eye on geopolitical developments will be crucial for Romanian companies. The ongoing crisis in Ukraine and the Middle East, as well as potential shifts in global political landscapes, could influence currency markets and trade dynamics. Inflation Management: Addressing concerns related to inflation will be paramount. Companies may need to assess and adapt their financial strategies to navigate potential fluctuations in the cost of goods and services, impacting budgeted revenues and expenses. Economic Resilience: Building on the demonstrated resilience in the face of past challenges, companies should proactively prepare for economic uncertainties. Diversifying revenue streams, maintaining financial flexibility, and adopting agile business models can contribute to sustained resilience. Strategic Collaboration: Collaborative efforts with financial service providers can empower companies to navigate complex financial landscapes effectively. Leveraging expertise and tailored solutions will be instrumental in achieving financial goals while mitigating risks. As Romanian companies chart their course through the financial landscape of 2024, the emphasis on resilience, adaptability, and collaborative strategies stands as the foundation for navigating uncertainties. Leveraging robust risk management is pivotal for a secure journey in the evolving economic environment, shaping a resilient future for enterprises.
If you’re searching for a hidden gem in Europe, Romania is calling your name. Tucked between the Carpathian Mountains and the Black Sea, this country is an untouched marvel, combining natural beauty, rich history, and endless opportunities for entrepreneurs and retirees alike. Romania offers a unique blend of modern life and ancient charm, making it […]
Let’s talk about the lack of connection with our body and how this is closely tied to burnout, plus, what to do about it. So often throughout the day, we live almost entirely in our minds. We’re focused either on what we have to do at the moment—tasks that increasingly demand mental effort over physical […]
Six men and one woman from Romania have been accused of recruiting dozens of children and adults from foster care centers, whom they then transported to Hungary, where they turned them into slaves, forcing them to work under inhumane conditions. The accused are from the localities of Ozun and Chilieni, Covasna County, Romania, and allegedly […]
The Museum of Collectivization, the first in Romania dedicated to the forced collectivization period of the communist era, is set to open a new wing, Corp B, funded through the EU-backed National Recovery and Resilience Plan (PNRR) and co-financed by the National Cultural Fund Administration (AFCN). With the new building, the museum located in Tămășeni, […]
Romania’s “Madrigal – Marin Constantin” National Chamber Choir, conducted by Anna Ungureanu, will be in Luxembourg and Belgium, as part of the “Bridges Across Europe/Punți peste Europa” European tour, where it will perform five extraordinary concerts. The performances will take place between November 20 and 25, with the help of the Ministry of Culture, the Romanian Embassy […]
The European Development Bank approved a EUR 140 million loan for Romania’s “Cultural Foundations” project, aimed at preserving historical monuments and constructing cultural buildings in the country. The project targets 14 investment objectives of national and European relevance, administered by public institutions under the Ministry of Culture, including the Romanian Athenaeum, the Romanian National Operas […]
