Foreign Exchange 1 and 2: Covid stimulus and QE: knock-on effects on interest rates, FX markets and hedging programs

Widespread and supersized fiscal and monetary action in the wake of Covid raises concerns about inflation and how it will affect emerging markets and commodity currencies, interest rate differentials and what the knock-on effect on corporate hedge programs will be. Christophe Downey from Societe Generale’s Americas Market Risk Advisory lays out his view of the possible scenarios and recommendations in the interim meeting.

NeuGroup for Foreign Exchange 1 and 2 are invitation-only groups for senior treasury professionals from across industries who have responsibility for FX risk management. The groups follow NeuGroup’s time-tested approach for membership peer groups, including facilitated agenda development, benchmarking surveys, and professional networking. The original group was formed in 2002 with the assistance of a Fortune 500 FX manager looking for a better benchmarking experience.

Interim meetings are meant for members of the specified peer group. These meetings originated in response to Covid-19 to keep members connected virtually in between semi-annual peer group meetings. They have a headline topic or topics presented for discussion, followed by an open forum for additional peer sharing and learning on other items.