‘Are You Ready for 2022?’ By Western Union Business Solutions

International trade and cross border payments have been forever changed by the pandemic. Multiple factors such as disruption to supply chains, digitalisation, surging freight costs or government lockdowns have had a far-reaching impact on how we all run our business.

As we now look ahead to 2022, the correlation between currency, trade and revenues, and the importance of developing strong foreign exchange strategies cannot be underestimated. Research shows that 66% of finance leaders felt exposure monitoring has been their biggest FX pain point during the pandemic so far. Meanwhile, 42% and 38% across education and retail sectors respectively report that currency volatility has negatively impacted either their profit margins or customer pricing models*.To provide a deeper understanding of these issues, we are excited to introduce this latest “Are You Ready?” report, offering a rare perspective and a look forward from our market insights team. This annual guide forecasts the emerging trends that may lie ahead in 2022 for SMEs and Corporates, who transact large volumes across borders but are exposed to macroeconomic and foreign exchange uncertainties.Whether importing manufactured goods or exporting B2B services, re­evaluating trade strategies against external market disruptions may have become more critical than ever. For example, interest rates set by central banks anchor currency exchange rates, and this report highlights how we’ve already seen more than twice the amount of interest rate hikes in 2021 (48) compared to pre-pandemic levels in 2019 (21)* . When you consider this against other complexities such as ongoing supply chain disruptions, 2022 could emerge as the most unpredictable economic recovery period in decades.Critically, companies with global operations often lack the time and resources needed to run this type of risk analysis or track sudden 5-10% shifts in exchange rates which can lead to acute financial difficulties. Decision-makers are therefore constantly looking for different external analysis to what is being done in-house, and more effective solutions and technology to help manage foreign exchange risk.To help, the latest edition of our annual guide uncovers some key market forecasts, data and perspectives that may assist your future planning. We hope this 2022 outlook underlines our commitment to supporting decision-makers with better access to information, leading to better financial outcomes, and helps you and your organisation in preparing for what is yet to come.

Download the latest ‘Are You Ready for 2022? report here or contact our solutions experts to see how we can help you with your currency solutions and financial management for 2022.

© 2021 Western Union Holdings Inc. All rights reserved. Western Union Business Solutions is a business unit of The Western Union Company. Services in Malta are provided by Western Union Business Solutions (Malta) Limited, a limited company registered in Malta (Company Number C22339) with its registered office at W Business Centre, Level 5, Triq Dun Karm, Birkirkara By-Pass, Birkirkara, BKR 9033, Malta and which is licensed and regulated by the Malta Financial Services Authority to undertake the business of a financial services in terms of the Financial Institutions Act) ("Western Union Business Solutions"). This article has been prepared solely for informational purposes and does not in any way create any binding obligations on either party. Relations between you and Western Union Business Solutions shall be governed by the applicable terms and conditions. No representations, warranties or conditions of any kind, express or implied, are made in this brochure.