Multi-currency accounts: how to protect them against trade tensions?

The year 2025 marks a turning point in international trade relations. With the escalation of tensions between major economic powers, businesses are facing unprecedented challenges in securing their financial flows. In this context of growing uncertainty, the protection of international accounts becomes a major strategic issue for any SME engaged in global trade.

Trade wars and your international accounts: understanding the impact and navigating uncertainty

An unprecedented tariff escalation in 2025

The trade tensions of 2025 are creating difficulties never before experienced in the business world. According to the Centre for Economic Policy Research (CEPR), new US tariffs affect $2.3 trillion worth of imports, or 71% of the total. Restrictive quotas, sector-specific sanctions, retaliatory measures that can block or delay payments… these modern trade wars are far from inconsequential. SMEs are finding their international accounts becoming vulnerable to sudden and unpredictable disruptions.

Direct impact on the management of international payments

Economic sanctions can now target entire countries, specific sectors, or individual financial institutions. Comply advantage reveals that payment service providers face increased risks, particularly those exposed to commercial intermediary markets and small financial institutions in East Asia and the Middle East.

The protection of international accounts is becoming more complex as rules change rapidly and without notice. Transactions can be blocked overnight, leading to considerable losses for unprepared businesses.

When uncertainty hits your treasury: new challenges for SMEs

Cost Volatility and Pressure on Margins

Geopolitical instability generates currency volatility that is particularly concerning for SMEs. A survey conducted by American Express among British businesses reveals that 42% of executives have suffered direct financial losses due to currency fluctuations, while 15% lose money every month because of this volatility. This reality is exacerbated in the context of current trade tensions, where political uncertainty amplifies exchange rate movements.

Pressure on cash flow is also manifested by instability in future costs. Businesses struggle to make reliable forecasts when exchange rates can fluctuate dramatically in just a few days. This situation compromises their ability to meet their commitments to international suppliers and maintain stable trade relations.

Increased complexity of payment circuits

Trade tensions are transforming traditional payment circuits. Some banking routes become inaccessible or subject to lengthy checks, forcing businesses to find often more costly alternatives.

Visibility: your best defense against the unpredictable

Real-time monitoring of exposures

Having complete visibility over multi-currency flows and balances becomes essential for the protection of international accounts. The most successful businesses are those that have put in place real-time monitoring systems for their exposures by currency and country.

This monitoring makes it possible to quickly identify emerging risks and make informed decisions, including setting up alerts for priority currency pairs to receive real-time updates.

Geographical diversification of assets

An effective multi-currency account protection strategy relies on the geographical diversification of assets. Rather than concentrating their funds in a single jurisdiction, savvy businesses spread their liquidity across different countries and banking systems, limiting the impact of targeted sanctions.

Adapted tools for optimal protection

Automated hedging solutions

Automated international treasury management tools are becoming crucial. Forward contracts make it possible to fix exchange rates for future payments, reducing the impact of volatility. Modern platforms integrate artificial intelligence functionalities to anticipate market movements and automatically adjust hedging strategies.

Local and multi-currency accounts: a defensive strategy

The use of local accounts in different countries is a particularly effective defensive strategy. By holding funds in the local currency of their trading partners, businesses reduce their exposure to exchange rate fluctuations and payment disruptions. This approach facilitates transactions in the event of restrictions on international transfers.

Modern multi-currency accounts make it possible to centralize management while maintaining this geographical diversification. They offer the necessary flexibility to react quickly to geopolitical changes while optimizing conversion costs. These local and multi-currency account solutions now represent an essential infrastructure for any business wishing to secure its international flows.

Approved financial partners and compliance

Choosing fully licensed financial partners becomes crucial for multi-currency account protection. These partners have the required licenses in major economic zones and maintain strict compliance with international regulations. They offer the expertise needed to navigate constantly evolving regulatory complexities.

Practical strategies to secure your international flows

Setting up segregated accounts

The use of segregated accounts is a fundamental protection measure. These accounts, separate from the operating accounts of financial institutions, ensure that funds are held securely and used only for intended transactions. This segregation protects against the risks of mismanagement and ensures transparency in the handling of funds.

Diversification of payment circuits

A robust strategy for the protection of international accounts involves diversifying payment circuits. Businesses should establish relationships with multiple financial service providers in different jurisdictions. This redundancy ensures continuity of operations even in the event of sudden restrictions.

Smart contracts and protection clauses

Integrating protection clauses into commercial contracts is also essential. These clauses may provide for alternative payment mechanisms in the event of sanctions, as well as provisions for renegotiating terms in the event of excessive currency volatility.

Anticipating the evolution of the geopolitical landscape

Monitoring precursor indicators

Businesses expert in multi-currency account protection develop a capacity to monitor precursor geopolitical indicators: diplomatic tensions, changes in trade policy, and economic signals that could foreshadow new sanctions.

Stress scenarios and contingency plans

Developing stress scenarios becomes essential to test the resilience of international account protection strategies. These exercises make it possible to identify vulnerabilities and prepare appropriate contingency plans. The most resilient businesses anticipate different geopolitical scenarios and prepare adapted responses.

Effective multi-currency account protection rests on three pillars: real-time visibility, operational flexibility, and regulatory compliance. By integrating these elements, SMEs can protect their current financial flows and position themselves to seize emerging opportunities.

The future belongs to businesses that will transform geopolitical challenges into competitive advantages, relying on robust and evolving international account protection strategies.

‍

‍