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Why CFOs are extending hedges - and expanding fraud defenses

Plus: Nvidia faces $5.5b hit as US tightens chip export rules to China

Author

Marina Mouka
May 19, 2025

Weekender Digest

WEEKLY EDITION BY MARINA MOUKA

Welcome to your latest CFO's Weekend Digest, your go-to source for the week’s top insights and updates tailored for financial leaders.

In this issue, you'll find:

  • FX hedging gets longer as tariff volatility shakes dollar stability.

  • Nvidia braces for $5.5B loss after new chip export restrictions to China.

  • Fraud prevention expands beyond finance as UK liability law looms.

We’re here to ensure you stay informed, inspired, and ready to tackle the week ahead.

 

TOP LONG WEEKEND READS

INSIGHTS

US firms shift to long-term FX hedges as tariff risk grows

Facing heightened trade policy uncertainty and a weakening US dollar, US multinationals are extending their foreign exchange hedges to cover longer time horizons.

The shift follows a surge in volatility triggered by new import tariffs, with firms moving from short-term forwards to two- to five-year protections.

Rising costs of near-term hedging and unstable exchange rates—especially for the euro—are prompting more strategic, flexible approaches, including options-based structures.

Treasury teams are prioritizing adaptability, seeking to safeguard earnings amid unclear macroeconomic signals. As trade and FX risks intensify, long-term currency protection is becoming central to enterprise risk management and financial planning.

NEWS ANALYSIS

Nvidia faces $5.5b hit as US tightens chip export rules to China

Nvidia is bracing for a $5.5 billion hit after the US tightened export controls on AI chips sold to China, including its H20 model developed specifically for the region.

The move adds new hurdles to Nvidia’s China strategy and raises broader concerns across the semiconductor sector. With export licenses now required indefinitely, finance teams must prepare for inventory write-downs, revenue disruption, and strategic supply chain recalibration.

Analysts warn this could accelerate tech decoupling and weaken US chipmaker influence in China. The impact extends beyond Nvidia—US firms with China exposure face mounting risks amid shifting trade policy and regulatory scrutiny.

INSIGHTS

Why fraud prevention is no longer just a finance function

Starting September 1, 2025, UK companies will face corporate criminal liability under the new “Failure to Prevent Fraud” offense—part of the Economic Crime and Corporate Transparency Act.

Modeled on the Bribery Act, the law holds organizations accountable for employee fraud unless they can prove “reasonable prevention procedures” were in place.

Compliance now demands company-wide vigilance—from finance to supply chain and IT. With financial fraud losses rising and new EU regulations also coming into play, proactive firms are embedding fraud detection into broader governance and culture. 

MORE THAN A NEWSLETTER

Editorial 
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