EuroFinance

Just as global economies were beginning to recover from the effects of the covid-19 pandemic

Artificial Intelligence is being hailed as both a saviour and a saboteur of modern business. To some, it threatens employment and agency; to others, it is the most efficient colleague never hired. In the corporate treasury, the mood is more measured.

In today’s credit markets, the old assumptions no longer hold. What used to be a five-year plan is now revised every few weeks, and even long-standing banking relationships are being stress-tested.

Despite the excitement about artificial intelligence, few fields require as much realism about its limitations as corporate treasury. Treasurers are tasked with making judgments with serious financial consequences across currencies, time zones, and uncertain markets.

In practice, many FX hedging programs remain in place long after their original rationale has faded. Designed with good intentions, they often become routine—rarely questioned, seldom adapted. For treasury teams facing growing currency volatility, that’s a risk in itself.

Foreign exchange and commodity risk management in Latin America requires more than theoretical models or strict policies. For companies operating in volatile economies—with inflation, changing trade flows and structural inefficiencies—risk management must rely on operational understanding, flexibility and ongoing reassessment.

With President Trump back in the Oval Office and tariffs imposed, treasury teams are navigating the uncertainties of US economic policy. The ripple effects are already visible—countries are engaging with Washington in pursuit of bilateral trade agreements, and companies are recalibrating their models to reflect what may become a more fragmented and transactional global trading environment.

Working capital is once again coming under the spotlight. As companies deal with new supply chain disruptions and cost pressures, there is renewed focus on how internal cash can be put to better use. For many treasurers, the goal isn’t just to improve cash flow—it’s to make working capital work harder for the business.

As volatility returns to global markets and central banks walk a fine line between tightening and easing, liquidity has reemerged as a top concern for treasury professionals.