Published June 24, 2025 • Vertas Financial Consultancy
Learn why a well-structured FX plan separates proactive companies from reactive ones. We break down tactics that modern CFOs in the Middle East can use to stabilize cash flow, improve visibility, and protect strategy in a volatile currency environment.
In 2025, currency exposure is once again a board-level concern. Egypt’s pound has devalued 3x since 2022. Türkiye’s lira touched record lows. Lebanon’s dual-market FX system is widening. Even Gulf-based CFOs face indirect risk through imported inflation and USD liquidity tightening.
The biggest danger? FX risk often compounds silently. Until it’s too late to hedge affordably.
Companies invoicing in EGP but sourcing in USD saw margin collapse. Many couldn’t pass on costs fast enough. Those with natural hedges (e.g., USD-linked exports or indexed contracts) navigated more safely.
Turkish firms with high USD debt faced doubled interest burdens as the lira weakened. Those who moved assets offshore or restructured payments survived longer. Businesses relying only on local banks struggled as FX volatility spiked borrowing costs.
Failure to prepare for dual exchange rates crushed receivables. Some CFOs implemented internal parallel tracking. Others had to manually reconcile up to four rate tiers. Those without daily dashboards lost grip on liquidity.
Don’t just look at currency — look at cash flow structure. If you pay suppliers in USD but sell in EGP or TRY, you’re exposed. CFOs should match foreign-currency revenue to FX-denominated costs to build resilience.
In long-term contracts, add clauses that tie pricing to FX corridors. Example: "This agreement price shall adjust by 1.5% for every 5% change in the USD/EGP rate."
Many CFOs still model debt service in static rates. But when devaluation occurs, real burdens spike. Use dual forecasts: one using the official rate, and one using the shadow/parallel rate.
If your group holds USD abroad, compare offshore USD vs local USD availability. The difference in ability to settle invoices and repatriate cash is often critical to payment timing.
Every board meeting should include a simple FX tracker:
Some businesses now use dual-price invoicing — quoting in both local and hard currency. While not always feasible legally, it adds optionality for pricing and psychological anchoring.
Today, FX risk affects pricing, supply chain, credit, and investor relations. It is a strategic issue. CFOs must bring clarity to boards — not just rate charts, but options, timelines, and thresholds.
Whether in Cairo, Istanbul, Dubai, or Beirut — the CFO who owns FX visibility owns strategic trust.
At VERTAS, we support regional finance leaders with real-time FX dashboards, indexed pricing playbooks, and scenario modeling aligned to your sector.
📩 Contact us for a custom FX exposure session: info@vertasfin.com