2021 has seen a massive boom in mergers and acquisitions and a focus on short-term cash flow. Along with the COVID-19 pandemic, these factors are forcing corporations to hedge their currency exposure. In turn, banks are booming as they sell foreign currency to their biggest customers. Supply chain problems, a rise in input costs, and the dollar's weakness are pushing corporate treasurers to protect their firms. Even so, hedging deals during the pandemic are 50 to 75% smaller than they were before March of 2019. On the forex market, the US Dollar started Wednesday about 15% lower than the Euro.
