Forex volatility, while always a concern among global businesses, developed into quite the headache during 2023, causing major pains to companies operating in offshore and nearshore regions.
From the infamous “super peso” in Mexico to the continuation of Argentina’s inflation saga, volatility in the currency markets positioned itself as one of the main disruptors for business in an already challenging macro landscape.
NSAM provides the following infographic in an attempt to illustrate the levels of forex volatility among some of the major offshore and nearshore markets. The graphic shows monthly variations in value for several currencies, compared to the US dollar, from January of 2021 through September of 2023.
The graph echoes what several industry analysts, market observers and global transactions experts have warned of all through the year: business leaders who are interested in taking their operations offshore/nearshore should keep a very close eye on the currency markets. If they don’t, they’ll fall victims to the inevitable shocks that come with operating in those geos.