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Treasury management can tie any business in knots. But how can your business adapt in 2026?
Treasury management will be a different ballgame in 2026. From AI to Trump, the world seems to be changing at a frantic pace. Alongside these rapid shifts, currency markets have become more unpredictable than ever. Sterling has ranged by 16 cents against the US dollar in 2025, representing a significant FX risk and one likely to hit the balance sheet of any ambitious business.
At the drop of a hat, the mood has changed from giddy to cautious, from optimistic to despondent. Things have moved so quickly it’s hard to keep track of where your finances stand. But how can your business navigate currency markets safely, and what are the solutions and strategies that can help you protect your profits and cashflow in 2026 and beyond.
Strategic treasury solutions
It can be easy to dismiss currency risk as an irregular issue. Historically, that’s how many businesses have approached treasury, dealing with their exposures on an adhoc basis and muddling through largely untroubled.
The folly of that strategy has become clear in recent years. Significant ruptures like Brexit, the covid-19 pandemic and the Liz Truss “mini-budget” have proved the disastrous impact that these Black Swan events can have. Large and powerful businesses have gone bust by underestimating the damaging impact that currency volatility can have on their bottom line.
When it comes to currency, businesses that implement strategic guardrails will reap substantial rewards. Those with comprehensive strategies will be able to nimbly overcome problems. Those with outdated or insufficient strategies will face significant headwinds when it comes to mark to market valuations, credit and decision-making.
Treasury teams face a number of hurdles when it comes to implementing this kind of solution. Often, they are forced to manage a dizzying array of exposures using insufficient or outdated technology. Fumbling across Excel spreadsheets to match counterparties and timelines can only work for so long. Eventually, the process will break and the prospect of manual error is never far away.
Having access to bespoke tools that reduce risk and protect your profit margins is essential as we head into the back end of the 2020s. SmartHedge PRO offers a user-friendly solution to a host of common pain points. Developed in-house to address the needs of British businesses, our platform provides clear snapshots of your exposures across counterparties and time horizons. Automate your reporting obligations and save hours manually validating data. Plus, your business will be able to make better, more data-driven decisions that dovetail with your strategic objectives and internal KPIs.
Discover how SmartHedge PRO can help you manage treasury on your terms.
Future-proofing treasury
It’s no secret that the world of finance is entering a volatile new era. Even the most well regarded experts cannot say for certain if markets will move up or down, and the same is true for your currency exposures. With billions traded every day, the risks are skewed heavily to the downside with market jitters capable of wiping out billions in value.
In 2026, British businesses need to adopt a rounded approach to risk, one that considers currency from the very start of the cycle as opposed to simply the end.
Click the button below to access our free white paper and learn more about treasury management in 2026.
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