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In today’s fast moving global economy, managing foreign exchange (FX) risk and currency volatility has become a top priority for African businesses engaged in international trade.

In a recent episode of the Unlocking Africa Podcast, we were joined by Jack Stanton, Trader at Verto, who broke down the complex landscape of FX markets and shared practical strategies for businesses navigating uncertain financial terrain.

The Shifting FX Landscape: Risk or Opportunity?

Jack began by painting a picture of the global FX market in 2025, a year marked by volatility, political shifts, and unexpected market reactions. From major currencies to emerging markets across Africa, fluctuations have become the new normal.

“We’re seeing intraday, weekly, and monthly volatility across most of the markets we serve,” says Jack. “But while volatility may appear as a threat, for traders, it also represents opportunities to support businesses through uncertainty.”

One surprising insight?

Even traditional correlations are breaking down. Jack cited an example where, despite a dramatic 7% drop in oil prices following tensions in the Middle East, Nigeria’s Naira appreciated instead of depreciating, a stark reminder that markets don’t always follow expected patterns.

Practical FX Risk Management Tips

So how can African businesses adapt to these unpredictable market conditions?

According to Jack, having a flexible but structured FX strategy is key. Verto supports clients by helping them develop long-term approaches that fit their invoice cycles and financial goals.

His top advice:

  • Stay Informed: Track weekly currency developments. Timely knowledge is your first line of defense.

  • Sell Smart: If you notice a relative strengthening in currency, use that window to reduce or close your positions.

  • Plan Ahead: Build a strategic plan around cash flow, payment schedules, and local exposures.

  • Expect the Unexpected: Don’t rely solely on past data, prepare for surprises.

Getting Started with Hedging

For businesses just starting to think about hedging FX exposure, Jack recommends beginning with the basics:

  • Set Internal Risk Limits: Monitor your currency holdings and dispose of excess beyond a certain threshold.

  • Build Financial Literacy: Understand market rates and trends within your region.

  • Work with Trusted FX Providers: Have someone in your team who can manage trades, settlements, and broker relationships effectively.

“You don’t need to be perfect,” Jack noted. “But having a process in place helps protect your margins and supports long-term growth.”

Final Thoughts

FX risk is no longer something African businesses can afford to ignore. But with the right tools, knowledge, and partners, companies can turn currency volatility into an advantage rather than a liability.

Stay tuned to the Unlocking Africa Podcast for more expert insights like these. Subscribe to our newsletter for behind-the-scenes content, entrepreneur spotlights, and curated business resources across Africa.

Want to learn more about managing cross-border payments and currency risk?
Visit www.vertofx.com and check out their latest tools helping African businesses scale globally.

Don’t miss his top advice and access to Verto’s FX Strategy Handbook for businesses navigating global payments in a turbulent economic climate. Access the Strategy Handbook here https://hubs.ly/Q03twDDk0