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.
In the context in which agri-food systems are responsible for almost one third of global greenhouse gas emissions, Auchan Romania assumes an active role in the transition of its supply chain toward a more sustainable model. At the second edition of the Climate Supplier Event, organized under the aegis of the Climate Change Summit, the […]
Janiva Magness, the winner of seven Blues Music Awards following 26 nominations, and nominated for a Grammy for a career spanning 17 albums, is set to perform at the 14th edition of the Brașov Jazz & Blues Festival, which will take place between August 14–16, 2026. Magness is one of the most valuable and influential […]
Auction house Artmark announced a major auction for this winter featuring an engraving created by Francisco Goya, the most important Spanish artist of the late 18th and early 19th centuries. Romania's late communist leader Nicolae Ceaușescu received this gift from King Juan Carlos I as a gesture of diplomacy. The engraving entitled “The Engagement – Capricho […]
Authorities managing Romania's Bicaz Gorges–Hășmaș National Park has built a fish ladder system on the Bicaz River, which will allow protected species to migrate and reproduce. There are several bridges and small bridge structures in the Bicaz River that have a “bottom sill,” meaning small waterfalls. Fish that do not jump like the trout cannot […]
The far-right opposition parties in the Romanian Parliament are set to file a motion of no confidence against the government headed by prime minister Ilie Bolojan. The motion, authored by senator Ninel Peia of the Peace – Romania First group, is specifically aimed at the reformist party Save Romania Union (USR), and is entitled “Romania […]
Romania's iconic rock singer Adrian Pleșca, known as “Artan,” died on Tuesday, December 2, after a fatal stroke, at the age of 64. The artist founded the well-known band “Timpuri Noi” in 1982 and “Partizan” in 2001, and was popular on the Romanian rock scene. Over the years, he left and returned to the two bands. Several […]
