Multinationals are moving to protect against foreign exchange risk and other repercussions of Britain’s decision to leave the European Union, said Anthony Carfang, managing director of consulting firm Novantas Inc.’s Treasury Strategies Inc. division.
Specifically, finance chiefs and treasurers are increasing their currency hedges, raising cash holdings and more closely scrutinizing the credit quality of their trade partners, he said.
“We’re all expecting a volatile ride,” Mr. Carfang said. “Clients are avoiding exposure. They are upping the amount of hedges.”
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