Negative Currency Effects Bring Losses to European and North American Firms

Many companies in the Euro Region and North American have already incurred revenue losses amounting to billions of dollars because of impacts cause by negative currencies based on recent studies.

They lost $39.54 billion with North American corporations’ losses increasing by 53 percent to $27.13 billion last year while European institutions reported $12.41bn shortfall due to this development.

Overall negative currency impact went up more than twice during the fourth quarter as these enterprises gave up $20.18 billion during that period as against only $8 billion in the previous quarter.

During the last quarter of 2014, the US currency climbed up four percent versus the euro with North American companies reporting FOREX impacts reaching $18.66 billion which is the biggest since the peak of the economic crisis in Europe.

The report made the recommendation that said companies need to reset their respective budget rates or modify their guidance considering the persistent instability in foreign exchange rates.

Monetary officials all over the world say foreign exchange rates are priorities amidst the background of the highest volatility in the last two decades.