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Currency hit to North American companies’ results dips in Q2 -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: This picture illustrates U.S. $100 banknotes that were taken in Tokyo, August 2, 2011. REUTERS/Yuriko Nakao

By Caroline Valetkevitch

NEW YORK, (Reuters) – The adverse impact of currency fluctuations upon corporate results of North American companies decreased in the second quarter this year compared to the previous quarter. Data from Kyriba on Tuesday showed that data from financial management and treasury firm Kyriba.

Kyriba stated in a report that the collective impact of the exchange rate on all companies located in Mexico, Canada, USA and the United States was $2.32billion. This compares to the $5.87billion negative effect experienced in the first quarter.

Reports from companies on the third quarter in 2021 are starting to be made.

Wolfgang Koester from Kyriba stated in a statement that supply chain disruptions and inflation would test treasurers and CFOs’ enterprise liquidity strategies. They will also need to apply best practices to drive growth, protect EPS and lower supply chain risk.

Kyriba stated that 37 North American companies experienced currency effects in the second half of 2018, compared to 77 and 28 respectively in 2020.

In the second quarter, it fell 0.9%. In the third quarter, it rose 2%.

When converted into U.S. currency, a stronger dollar renders overseas sales less value.

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