Johan Gabriels & Alin Latu

iBanFirst, a leading global provider of foreign exchange and international payments for businesses, present in 10 European countries, reports a 97% increase in FX risk hedging deals for Romanian companies in 2023 amidst global economic uncertainty and concerns regarding currency market stability.

As challenging economic circumstances continue, the global provider expects this surge in demand for robust risk management solutions to reinforce further this year. The main factors that will influence financial decision making are expected to remain geopolitical stability, inflation management, economic resilience and strategic collaboration.

Faced with the effects of a geopolitical crisis, Romanian companies engaged in international trade, spanning industries such as agriculture, wholesale, IT and retail, strategically turned to hedging tools, particularly forward contracts. The adoption of forward contracts played a pivotal role in mitigating the impact of currency volatility on budgeted revenues and expenses, offering a secure mechanism to lock in foreign exchange rates for impending international payments.

“The surge in demand for forward contracts is a testament to the critical role FX risk hedging played in shielding the profit margins of Romanian companies from the unpredictable fluctuations in currency values stemming from geopolitical uncertainties, particularly the ongoing crisis in Ukraine and the Middle East, and the inflation concerns in early 2023. These businesses displayed remarkable resilience, not only safeguarding their profit margins but actively expanding their global footprint,” said Alin Latu, Country Manager Romania at iBanFirst.

In 2023, risk management solutions accounted for 40% of iBanFirst’s revenues on the local market, compared to an average of 50% in the region, being the most dynamic service on a regional level as well. The main foreign trade partners of Romanian companies using its services remain their counterparts from the EU, China, Turkey and the USA, with a significant increase in trade with China.

“The heightened demand for our risk management solutions in Romania, Bulgaria and Hungary underscored the acute need for businesses from the region to adopt transparent and efficient currency risk management solutions. In the coming year, iBanFirst remains committed to empowering more Romanian companies to navigate currency fluctuations, facilitating seamless international transactions with foreign counterparties, and opening doors to a broader range of global opportunities,” said Johan Gabriels, Regional Director at iBanFirst.

Founded in 2016, iBanFirst offers a next-generation cross-border payment experience that combines a powerful platform and the support of FX experts.

iBanFirst has the financial backing of the French public investment bank (bpiFrance), European venture capital leaders (Elaia, Xavier Niel), and the American investment fund Marlin Equity Partners. Regulated by the National Bank of Belgium as a payment institution, iBanFirst is authorized to operate throughout the European Union.

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