Global businesses face growing 'volatility gap' as currency risk lags behind payment innovation
A new report by Convera highlights a widening disparity between the rapid advancements in cross-border payments and the slower progress in managing foreign exchange (FX) volatility. While innovations such as real-time settlement, stablecoins, and ISO 20022 messaging have improved speed and transparency of international transactions, businesses remain exposed to currency risk that affects profit margins, forecasts, and cash flow. According to data from the Bank for International Settlements, global FX turnover reached $9.5 trillion daily in April 2025 — a 27% increase since 2022. Despite this growth, many companies still treat currency risk as an afterthought rather than integrating it into their payment strategies. The report emphasizes that real-time payments do not eliminate exposure to FX fluctuations between cycles. Convera recommends aligning hedging with actual payment dates and embedding FX decisions directly into financial workflows for greater resilience.
Topics: cross-border payments currency risk management FX volatility payments innovation