Access via sign-up on the event app or by invitation only. English-French-Portuguese translation available.
African currencies have depreciated 65% against the dollar since 2007. For CFOs, this means higher procurement costs, tighter working capital and earnings volatility. Hedging instruments remain scarce and short-dated, rarely extending beyond 12 months, and are priced for deeper liquidity than most African markets can support. Cost is the primary barrier: 61% of African financial institutions find hedging products too expensive for the margins they protect. Where derivatives are unavailable, corporates rely on natural hedging, inter-company financing, faster settlement and local-currency invoicing. In 2013, Brazil’s central bank used FX swaps to create a liquid derivative market where none had existed. Could African markets develop practical hedging solutions without adding fiscal or monetary risk?
Key points
- When derivatives are unavailable or unaffordable, what corporate FX management strategies actually work, and which exposures remain unhedgeable?
- Should central banks provide hedging instruments directly, or focus on building the liquidity conditions that let markets price risk?
- Hard currency allocation is a regulatory decision: what does productive engagement between CFOs and central banks look like?