Giant banks and traders have manipulated exchange rates to make profits. Today, an integration with the management of extra-financial risks gives hope that the currency market will turn the page.
Félicienne HOUESSOU
More than $12 billion in fines related to currency manipulation and hidden pricing is the result of a decade of abuses and scandals within the currency market that seems to be coming to an end. The global currency market is beginning to integrate the management of extra-financial risks by companies. Today, some banks are trying to promote an environment that takes into account social rights and good governance.
"Companies are increasingly aware of the challenges and problems of SRI (socially responsible investment). In our Hedge to Pledge initiative, we offer companies that regularly trade their foreign exchange transactions with Societe Generale to round off the price at which they deal with us. We are committed to matching this small additional cost. The entirety will be donated to an association chosen by the company from a set of associations selected by Epic, an external partner," says Bruno Laurier, Global Head of Foreign Exchange Sales and Corporate Investment Solutions at Societe Generale.
The spontaneous creation of a kind of Tobin tax (financial transaction tax) "virtuous" for the climate, social rights has forced several companies to become aware of socially responsible investment.