Why managing FX risk should be on every leader’s agenda

In this blog, Paul Nelson, Corporate Foreign Exchange at Moneycorp, outlines the unpredictability of global markets and what this means for BIA members. 

Global markets are unpredictable. Currency swings, inflationary pressures and shifting interest rates are creating a challenging environment for UK biotech and life sciences companies. If you have overseas investors or partnerships, global supply chains or revenue streams, foreign exchange (FX) risk isn’t just a financial detail; it’s a strategic issue.

Why now?

The pound, the US dollar, and the euro have all seen significant volatility in recent months. What does that mean for BIA members?

• The value of funding is uncertain when the business has international investors.
• Supply chain costs fluctuate when raw materials or components are sourced overseas.
• Revenue streams shrink when overseas earnings lose value on conversion.
• Budget certainty disappears when clinical trials or R&D projects are priced in foreign currencies.

Can any business afford to leave this to chance?

The bigger picture

FX risk doesn’t just affect the bottom line, it impacts growth, investment and competitiveness. Companies that manage currency exposure effectively can plan with confidence, maintain margins and pricing stability in global markets. Those that don’t manage currency exposure risk seeing hard-earned funding or profits wiped out by market movements.

Our perspective

As a BIA member, we understand the unique challenges facing biotech and life science companies. We have a wealth of experience in helping businesses navigate currency volatility. Our role is simple:

• Provide clarity and confidence through effective risk mitigating tools and expert market insight.
• Support your growth with a global payments network and sector expertise.
• Support the management of your costs with hedging solutions*.

What’s next?

Managing FX risk isn’t about predicting the future - it’s about being prepared for it. If you’d like to explore how we can help your business build resilience, please contact Paul Nelson.

^{Beware of currency risk.}

^{*Hedging Solutions may help offset the potential risk of foreign exchange rate fluctuations which could result in losses in upcoming expenses for goods, services, or direct investments via Moneycorp. To hedge your business' balance sheet exposure, additional products and services are provided by our Moneycorp Financial Risk Management Limited business.}

^{Moneycorp is a trading name of TTT Moneycorp Limited which is authorised and regulated by the FCA for the provision of payment services (FRN: 308919). Date of approval 01/09/2025}