Wolfgang Koester | Source | Senior Strategist at Kyriba Corp

FX losses are the consequence of companies not fully understanding, nor being able to actively manage, their global liquidity. The pandemic crisis has forced finance departments to react quickly to reduce losses and shore-up cash-flow by repatriating assets or taking on loans in different localities. It’s not surprising that companies that didn’t have complete visibility into their FX exposures suffered material losses. Couple this with intense currency volatility and you exacerbate a multi-billion-dollar problem. We cannot stress enough about the importance of implementing a full digital transformation to allow CFOs and treasurers the ability to report in real-time on cash forecasting, payments fraud protection, payments tracking, and more. An advanced Active Liquidity Management platform is crucial for modern finance leaders to better manage through the volatility that now defines our world. Without implementing such a solution, we’ll continue to see strains on free-cash-flow, including significant FX losses, payment fraud, and a reduction of working capital from multinational companies.