CONVERA
Facing headwinds and high expectations for global commerce Today , exchange rates are experiencing volatility , with economic headwinds leading to unpredictable impacts on a growing global trade market post-COVID-19 . This volatility is affecting cross-border trade for SMEs and large corporations alike .
Interest rates from 155 central banks between August 2021-2023 have risen over 500 times – constituting the most aggressive period of interest rate hikes ever recorded – a reality that has jolted foreign exchange ( FX ) rates .
The cause of these unprecedented hikes ? The need to swiftly contain inflation . Central banks have had to reverse course from their actions during the COVID-19 pandemic when over 200 interest rate cuts happened throughout 2020 .
As the gears of industry and trade began turning again in 2021 , a regime shift has been mandated to control inflation . But rapidly imposed , successive interest rate hikes have knocked exchange rates ; the euro , US dollar and pound sterling have seen much volatility since .
Top five macro concerns businesses expect 6-12 months ahead
Note : percentages will not add up to 100 % due to multiple response options . Only displaying top 5 concerns .
Source : Convera – July 6-7 2023 . Displaying responses from 95 businesses across Europe , APAC and NAM . Respondents included industries such as financial services , manufacturing , and respondent job titles included FDs , CFOs , and MDs . Question : “ Thinking about the next 6-12 months , what issue ( s ) concerns you most today ?”. ‘ Other ’ concerns not displayed included Digital transformation / automation .
42 October 2023