Currency management is the process by which companies can capture the growth opportunities that result from buying and selling in multiple currencies. Currency management is carried out across the entire foreign exchange workflow, the pre-trade phase including the firm’s pricing policy, the trade phase including hedge execution, and the post-trade phase which includes cash management and accounting.
There has been a significant growth in the international trade which is very important for the currency management market, as currency managers provide expert advice on the buying and selling of various currencies and record their fluctuations, that helps to minimize the risk factor involved in international trades. In addition, fluctuations in the foreign exchange due to various reasons such as inflation, war, political turmoil in a country lead to various risk associated with companies dealing in foreign trade or buying and selling of currencies. Thus, currency management helps to manage these fluctuations by providing various services such as hedging. Therefore, these are some of the factors propelling the growth of currency management market. However, there are a number of countries becoming self-reliant and do not deal in foreign trade. These countries do not deal in foreign exchange and thus do not require the services of currency management which is a major factor limiting the growth of currency management market. On the contrary, increasing trade relation among various countries will increase the buying and selling of multiple currencies is expected to provide lucrative growth opportunities in the upcoming years.
The currency management market is segmented on the basis of exchange type, hedge type, application, and region. By exchange type, it is segmented into floating currency exchange, and fixed currency exchange. By hedge type, it is classified into benchmark hedging, portfolio hedging, and share class hedging. The bench market hedging is further divided into benchmark weight hedging, and currency-hedged benchmark replication. Based on application, the currency management market is bifurcated into commercial and investment banks, central banks, multinational corporations, and others. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the currency management market such as Acumatica, LEE OVERLAY PARTNERS LIMITED, Aston, Castle Currency Management Inc., CIBC, ECOUNT Inc., Kantox. com, Mesirow Financial Holdings, Inc., Bankhaus Metzler, Northern Trust Corporation, Record, Rhicon, Russell Investments Group, LLC, State Street Corporation, United Advisors, HedgeFlows Ltd., AND Tripalti Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the currency management industry.
There has been a significant growth in the international trade which is very important for the currency management market, as currency managers provide expert advice on the buying and selling of various currencies and record their fluctuations, that helps to minimize the risk factor involved in international trades. In addition, fluctuations in the foreign exchange due to various reasons such as inflation, war, political turmoil in a country lead to various risk associated with companies dealing in foreign trade or buying and selling of currencies. Thus, currency management helps to manage these fluctuations by providing various services such as hedging. Therefore, these are some of the factors propelling the growth of currency management market. However, there are a number of countries becoming self-reliant and do not deal in foreign trade. These countries do not deal in foreign exchange and thus do not require the services of currency management which is a major factor limiting the growth of currency management market. On the contrary, increasing trade relation among various countries will increase the buying and selling of multiple currencies is expected to provide lucrative growth opportunities in the upcoming years.
The currency management market is segmented on the basis of exchange type, hedge type, application, and region. By exchange type, it is segmented into floating currency exchange, and fixed currency exchange. By hedge type, it is classified into benchmark hedging, portfolio hedging, and share class hedging. The bench market hedging is further divided into benchmark weight hedging, and currency-hedged benchmark replication. Based on application, the currency management market is bifurcated into commercial and investment banks, central banks, multinational corporations, and others. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the currency management market such as Acumatica, LEE OVERLAY PARTNERS LIMITED, Aston, Castle Currency Management Inc., CIBC, ECOUNT Inc., Kantox. com, Mesirow Financial Holdings, Inc., Bankhaus Metzler, Northern Trust Corporation, Record, Rhicon, Russell Investments Group, LLC, State Street Corporation, United Advisors, HedgeFlows Ltd., AND Tripalti Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the currency management industry.
KEY BENEFITS FOR STAKEHOLDERS
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the currency management market analysis from 2021 to 2031 to identify the prevailing currency management market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the currency management market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global currency management market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Exchange Type
- Floating Currency Exchange
- Fixed Currency Exchange
By Hedge Type
- Portfolio Hedging
- Share class Hedging
- Benchmark Hedging
By Application
- Commercial and Investment Banks
- Central Banks
- Multinational Corporations
- Others
By Region
- North America
- U. S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest Of Europe
- Asia-Pacific
- China
- India
- Japan
- Australia
- Singapore
- Rest Of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Acumatica
- Adrian Lee & Partners
- Aston
- Castle Currency
- CIBC
- ECOUNT
- Kantox
- Mesirow
- Metzler
- Northern Trust Corporation.
- Record
- Rhicon
- Russell Investments Group, LLC.
- State Street Corporation
- United Advisers
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Table of Contents
CHAPTER 1: INTRODUCTION1.1. Report description
1.2. Key market segments
1.3. Key benefits to the stakeholders
1.4. Research Methodology
1.4.1. Secondary research
1.4.2. Primary research
1.4.3. Analyst tools and models
CHAPTER 2: EXECUTIVE SUMMARY
2.1. Key findings of the study
2.2. CXO Perspective
CHAPTER 3: MARKET OVERVIEW
3.1. Market definition and scope
3.2. Key findings
3.2.1. Top investment pockets
3.3. Porter’s five forces analysis
3.4. Top player positioning
3.5. Market dynamics
3.5.1. Drivers
3.5.2. Restraints
3.5.3. Opportunities
3.6. COVID-19 Impact Analysis on the market
CHAPTER 4: CURRENCY MANAGEMENT MARKET, BY EXCHANGE TYPE
4.1 Overview
4.1.1 Market size and forecast
4.2 Floating Currency Exchange
4.2.1 Key market trends, growth factors and opportunities
4.2.2 Market size and forecast, by region
4.2.3 Market analysis by country
4.3 Fixed Currency Exchange
4.3.1 Key market trends, growth factors and opportunities
4.3.2 Market size and forecast, by region
4.3.3 Market analysis by country
CHAPTER 5: CURRENCY MANAGEMENT MARKET, BY HEDGE TYPE
5.1 Overview
5.1.1 Market size and forecast
5.2 Benchmark Hedging
5.2.1 Key market trends, growth factors and opportunities
5.2.2 Market size and forecast, by region
5.2.3 Market analysis by country
5.3 Portfolio Hedging
5.3.1 Key market trends, growth factors and opportunities
5.3.2 Market size and forecast, by region
5.3.3 Market analysis by country
5.4 Share class Hedging
5.4.1 Key market trends, growth factors and opportunities
5.4.2 Market size and forecast, by region
5.4.3 Market analysis by country
CHAPTER 6: CURRENCY MANAGEMENT MARKET, BY APPLICATION
6.1 Overview
6.1.1 Market size and forecast
6.2 Commercial and Investment Banks
6.2.1 Key market trends, growth factors and opportunities
6.2.2 Market size and forecast, by region
6.2.3 Market analysis by country
6.3 Central Banks
6.3.1 Key market trends, growth factors and opportunities
6.3.2 Market size and forecast, by region
6.3.3 Market analysis by country
6.4 Multinational Corporations
6.4.1 Key market trends, growth factors and opportunities
6.4.2 Market size and forecast, by region
6.4.3 Market analysis by country
6.5 Others
6.5.1 Key market trends, growth factors and opportunities
6.5.2 Market size and forecast, by region
6.5.3 Market analysis by country
CHAPTER 7: CURRENCY MANAGEMENT MARKET, BY REGION
7.1 Overview
7.1.1 Market size and forecast
7.2 North America
7.2.1 Key trends and opportunities
7.2.2 North America Market size and forecast, by Exchange Type
7.2.3 North America Market size and forecast, by Hedge Type
7.2.4 North America Market size and forecast, by Application
7.2.5 North America Market size and forecast, by country
7.2.5.1 U. S.
7.2.5.1.1 Market size and forecast, by Exchange Type
7.2.5.1.2 Market size and forecast, by Hedge Type
7.2.5.1.3 Market size and forecast, by Application
7.2.5.2 Canada
7.2.5.2.1 Market size and forecast, by Exchange Type
7.2.5.2.2 Market size and forecast, by Hedge Type
7.2.5.2.3 Market size and forecast, by Application
7.3 Europe
7.3.1 Key trends and opportunities
7.3.2 Europe Market size and forecast, by Exchange Type
7.3.3 Europe Market size and forecast, by Hedge Type
7.3.4 Europe Market size and forecast, by Application
7.3.5 Europe Market size and forecast, by country
7.3.5.1 UK
7.3.5.1.1 Market size and forecast, by Exchange Type
7.3.5.1.2 Market size and forecast, by Hedge Type
7.3.5.1.3 Market size and forecast, by Application
7.3.5.2 Germany
7.3.5.2.1 Market size and forecast, by Exchange Type
7.3.5.2.2 Market size and forecast, by Hedge Type
7.3.5.2.3 Market size and forecast, by Application
7.3.5.3 France
7.3.5.3.1 Market size and forecast, by Exchange Type
7.3.5.3.2 Market size and forecast, by Hedge Type
7.3.5.3.3 Market size and forecast, by Application
7.3.5.4 Italy
7.3.5.4.1 Market size and forecast, by Exchange Type
7.3.5.4.2 Market size and forecast, by Hedge Type
7.3.5.4.3 Market size and forecast, by Application
7.3.5.5 Spain
7.3.5.5.1 Market size and forecast, by Exchange Type
7.3.5.5.2 Market size and forecast, by Hedge Type
7.3.5.5.3 Market size and forecast, by Application
7.3.5.6 Netherlands
7.3.5.6.1 Market size and forecast, by Exchange Type
7.3.5.6.2 Market size and forecast, by Hedge Type
7.3.5.6.3 Market size and forecast, by Application
7.3.5.7 Rest of Europe
7.3.5.7.1 Market size and forecast, by Exchange Type
7.3.5.7.2 Market size and forecast, by Hedge Type
7.3.5.7.3 Market size and forecast, by Application
7.4 Asia-Pacific
7.4.1 Key trends and opportunities
7.4.2 Asia-Pacific Market size and forecast, by Exchange Type
7.4.3 Asia-Pacific Market size and forecast, by Hedge Type
7.4.4 Asia-Pacific Market size and forecast, by Application
7.4.5 Asia-Pacific Market size and forecast, by country
7.4.5.1 China
7.4.5.1.1 Market size and forecast, by Exchange Type
7.4.5.1.2 Market size and forecast, by Hedge Type
7.4.5.1.3 Market size and forecast, by Application
7.4.5.2 India
7.4.5.2.1 Market size and forecast, by Exchange Type
7.4.5.2.2 Market size and forecast, by Hedge Type
7.4.5.2.3 Market size and forecast, by Application
7.4.5.3 Japan
7.4.5.3.1 Market size and forecast, by Exchange Type
7.4.5.3.2 Market size and forecast, by Hedge Type
7.4.5.3.3 Market size and forecast, by Application
7.4.5.4 Australia
7.4.5.4.1 Market size and forecast, by Exchange Type
7.4.5.4.2 Market size and forecast, by Hedge Type
7.4.5.4.3 Market size and forecast, by Application
7.4.5.5 Singapore
7.4.5.5.1 Market size and forecast, by Exchange Type
7.4.5.5.2 Market size and forecast, by Hedge Type
7.4.5.5.3 Market size and forecast, by Application
7.4.5.6 Rest of Asia-Pacific
7.4.5.6.1 Market size and forecast, by Exchange Type
7.4.5.6.2 Market size and forecast, by Hedge Type
7.4.5.6.3 Market size and forecast, by Application
7.5 LAMEA
7.5.1 Key trends and opportunities
7.5.2 LAMEA Market size and forecast, by Exchange Type
7.5.3 LAMEA Market size and forecast, by Hedge Type
7.5.4 LAMEA Market size and forecast, by Application
7.5.5 LAMEA Market size and forecast, by country
7.5.5.1 Latin America
7.5.5.1.1 Market size and forecast, by Exchange Type
7.5.5.1.2 Market size and forecast, by Hedge Type
7.5.5.1.3 Market size and forecast, by Application
7.5.5.2 Middle East
7.5.5.2.1 Market size and forecast, by Exchange Type
7.5.5.2.2 Market size and forecast, by Hedge Type
7.5.5.2.3 Market size and forecast, by Application
7.5.5.3 Africa
7.5.5.3.1 Market size and forecast, by Exchange Type
7.5.5.3.2 Market size and forecast, by Hedge Type
7.5.5.3.3 Market size and forecast, by Application
CHAPTER 8: COMPANY LANDSCAPE
8.1. Introduction
8.2. Top winning strategies
8.3. Product Mapping of Top 10 Players
8.4. Competitive Dashboard
8.5. Competitive Heatmap
8.6. Key developments
CHAPTER 9: COMPANY PROFILES
9.1 Acumatica
9.1.1 Company overview
9.1.2 Company snapshot
9.1.3 Operating business segments
9.1.4 Product portfolio
9.1.5 Business performance
9.1.6 Key strategic moves and developments
9.2 Adrian Lee & Partners
9.2.1 Company overview
9.2.2 Company snapshot
9.2.3 Operating business segments
9.2.4 Product portfolio
9.2.5 Business performance
9.2.6 Key strategic moves and developments
9.3 Aston
9.3.1 Company overview
9.3.2 Company snapshot
9.3.3 Operating business segments
9.3.4 Product portfolio
9.3.5 Business performance
9.3.6 Key strategic moves and developments
9.4 Castle Currency
9.4.1 Company overview
9.4.2 Company snapshot
9.4.3 Operating business segments
9.4.4 Product portfolio
9.4.5 Business performance
9.4.6 Key strategic moves and developments
9.5 CIBC
9.5.1 Company overview
9.5.2 Company snapshot
9.5.3 Operating business segments
9.5.4 Product portfolio
9.5.5 Business performance
9.5.6 Key strategic moves and developments
9.6 ECOUNT
9.6.1 Company overview
9.6.2 Company snapshot
9.6.3 Operating business segments
9.6.4 Product portfolio
9.6.5 Business performance
9.6.6 Key strategic moves and developments
9.7 Kantox
9.7.1 Company overview
9.7.2 Company snapshot
9.7.3 Operating business segments
9.7.4 Product portfolio
9.7.5 Business performance
9.7.6 Key strategic moves and developments
9.8 Mesirow
9.8.1 Company overview
9.8.2 Company snapshot
9.8.3 Operating business segments
9.8.4 Product portfolio
9.8.5 Business performance
9.8.6 Key strategic moves and developments
9.9 Metzler
9.9.1 Company overview
9.9.2 Company snapshot
9.9.3 Operating business segments
9.9.4 Product portfolio
9.9.5 Business performance
9.9.6 Key strategic moves and developments
9.10 Northern Trust Corporation.
9.10.1 Company overview
9.10.2 Company snapshot
9.10.3 Operating business segments
9.10.4 Product portfolio
9.10.5 Business performance
9.10.6 Key strategic moves and developments
9.11 Record
9.11.1 Company overview
9.11.2 Company snapshot
9.11.3 Operating business segments
9.11.4 Product portfolio
9.11.5 Business performance
9.11.6 Key strategic moves and developments
9.12 Rhicon
9.12.1 Company overview
9.12.2 Company snapshot
9.12.3 Operating business segments
9.12.4 Product portfolio
9.12.5 Business performance
9.12.6 Key strategic moves and developments
9.13 Russell Investments Group, LLC.
9.13.1 Company overview
9.13.2 Company snapshot
9.13.3 Operating business segments
9.13.4 Product portfolio
9.13.5 Business performance
9.13.6 Key strategic moves and developments
9.14 State Street Corporation
9.14.1 Company overview
9.14.2 Company snapshot
9.14.3 Operating business segments
9.14.4 Product portfolio
9.14.5 Business performance
9.14.6 Key strategic moves and developments
9.15 United Advisers
9.15.1 Company overview
9.15.2 Company snapshot
9.15.3 Operating business segments
9.15.4 Product portfolio
9.15.5 Business performance
9.15.6 Key strategic moves and developments
Executive Summary
According to this report, titled, 'Currency Management Market,' the currency management market was valued at $331.45 billion in 2021, and is estimated to reach $1631.3 billion by 2031, growing at a CAGR of 17.5% from 2022 to 2031.Effective currency management presumes effective foreign exchange hedging. Depending on a company’s specific parameters, currency management solutions allow managers to design the hedging programs and combinations of hedging programs that best protect them for currency risk, in an automated manner. Moreover, the currency management strategy of pricing and selling in their clients’ currencies, firms allow commercial teams to add promising new markets to the portfolio. Moreover, they are in a position to capture the price mark-up usually applied by clients who receive money in foreign currencies. Therefore, these are some of the currency management market trends.
Furthermore, major market players are undertaking various strategies to increase the competition and offer enhanced services to their customers for the currency management market. For instance, on February 2022, Monneo announced its partnership with Kantox, a global leader in currency management automation software. The partnership will give Monneo’s customers additional flexibility when managing outgoing payments. With its innovative currency management automation technology, Kantox can help businesses fully automate and streamline their end-to-end FX workflow, allowing firms to be better protected from risk and helping to increase their competitiveness. The new partnership means Monneo can offer this additional automated solution to those using its service. In doing so, the burgeoning FinTech is helping to provide its customers with more flexibility when managing outgoing payments. Therefore, these strategies will help the currency management market growth.
On the basis of hedge type, the benchmark hedging segment is the highest growing segment. This is attributed to the fact that benchmark hedging provides a means for traders and investors to mitigate market risk and volatility. It minimizes the foreign exchange risk of loss. Market risk and volatility are an integral part of the market, and the main motive of investors is to make profits. However, investors are not in a position to control or manipulate markets in order to safeguard their investments.
Based on region, North America attained the highest growth in 2021. This is attributed to the fact that rise in the exponential growth of foreign currency holders across the North America. Moreover, a significant increase in international trade activities is catalyzing the demand for forex reserve as it provides numerous benefits, such as minimal trading costs, high liquidity and transactional transparency, and vast trading volume.
COVID-19 had a negative impact on the market since, the demand for foreign exchange reduced during the pandemic. In addition, international trade was stopped due to the lockdown restriction which further decreased the demand for buying and selling of foreign exchange. Thus, the demand for currency management services were decreased Therefore, the COVID-19 negatively impacted the currency management industry.
Key findings of the study
By exchange type, the floating currency exchange segment led the currency management market size in terms of revenue in 2021.By application, the commercial and investment banks segment accounted for the highest currency management market share in 2021.
By region, North America generated the highest revenue in 2021.
The key players profiled in the currency management market analysis are Acumatica, LEE OVERLAY PARTNERS LIMITED, Aston, Castle Currency Management Inc., CIBC, ECOUNT Inc., Kantox.com, Mesirow Financial Holdings, Inc., Bankhaus Metzler, Northern Trust Corporation, Record, Rhicon, Russell Investments Group, LLC, State Street Corporation, United Advisors, HedgeFlows Ltd., AND Tripalti Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
Companies Mentioned
- Acumatica
- Adrian Lee & Partners
- Aston
- Castle Currency
- Cibc
- Ecount
- Kantox
- Mesirow
- Metzler
- Northern Trust Corporation.
- Record
- Rhicon
- Russell Investments Group, LLC.
- State Street Corporation
- United Advisers
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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