MillTech survey shows US and UK firms ramping up currency hedges amid Iran war volatility
Nearly 75% of companies reported FX losses from unhedged positions, pushing hedge ratios to their highest levels in years.
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Add us on Google by Editorial Team May. 27, 2026MillTechFX’s latest Corporate Hedging Monitor, which surveys over 250 CFOs, treasurers, and senior finance executives from the US and UK, found a significant jump in foreign exchange hedging activity over the last quarter. UK corporates pushed their hedge ratios up to 78% in early 2025, meaning roughly four out of every five dollars (or pounds) of foreign currency exposure are now covered.
The pain that prompted the pivot
Approximately 75% of surveyed firms reported suffering FX losses due to unhedged positions amid the volatility that’s defined 2025 so far.
AdvertisementThe spike in hedging activity during Q2 and Q3 of 2025 lines up with the escalation of geopolitical tensions surrounding the Iran conflict, which has rippled through energy markets and disrupted supply chains. Rising energy prices, a downstream effect of the conflict, have compounded the problem. When oil prices swing, so do the currencies of energy-importing and energy-exporting nations.
What the numbers actually tell us
The 78% hedge ratio among UK corporates means companies are leaving only a small window of unhedged exposure, prioritizing certainty over the potential upside of favorable currency moves.
Companies aren’t just hedging more. They’re hedging longer. The data indicates that firms have been increasing hedge tenors, meaning they’re locking in protection for extended periods rather than rolling short-term contracts quarter by quarter.
What this means for investors and the crypto angle
Higher hedge ratios mean companies are better protected against currency shocks, which should reduce the frequency of nasty FX-related earnings misses. On the other hand, hedging costs money. Every forward contract and option premium eats into margins, even if it prevents a worse outcome.
The survey found no mention of cryptocurrencies or blockchain-based tools being used in corporate FX risk management. This highlights the gap between crypto’s theoretical utility as a hedging tool and its real-world adoption among traditional corporates. Security concerns, regulatory ambiguity, and integration challenges with existing treasury management systems remain significant barriers.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
