A new survey from MillTechFX shows a sharp increase in foreign exchange hedging among US and UK corporations, driven by the volatility surrounding the Iran conflict. The Corporate Hedging Monitor, which polled over 250 CFOs, treasurers, and senior finance executives, found UK firms pushed their hedge ratios to 78% in early 2025-meaning roughly four out of every five dollars of foreign currency exposure are now covered.
Approximately 75% of surveyed firms reported suffering FX losses due to unhedged positions this year. The hedging surge aligns with the escalation of geopolitical tensions with Iran, which have rippled through energy markets and disrupted supply chains. Rising oil prices have compounded the problem, swinging the currencies of energy-importing and energy-exporting nations.
Companies are not just hedging more-they are hedging longer. The data shows firms have increased hedge tenors, locking in protection for extended periods rather than rolling short-term contracts quarter by quarter. While higher hedge ratios reduce the risk of FX-related earnings misses, the costs of forward contracts and option premiums eat into margins.
The survey found no mention of cryptocurrencies or blockchain tools being used in corporate FX risk management, highlighting the gap between crypto's theoretical utility and real-world adoption among traditional corporates.