Currency Misvaluation, Risk Management, and Corporate Strategy: A 2026 Survey

Abstract

This report summarizes and evaluates the responses to a 2026 survey on the role of currency misvaluation in currency risk management and corporate strategy. The short survey was sent to 350 treasurers and investment professionals. The total number of survey responses was 100, of which 65 were substantive. The survey’s most significant finding is that of the 65 substantive responses, 71% indicated that currency misvaluation is discussed or considered in long-term strategic planning, including 48% that specifically incorporate currency misvaluation into capital investment, financing, or capital allocation decisions. The survey responses also indicate that currency misvaluation is not generally a consideration in currency hedging decisions. Instead, cash flow predictability, time horizon, currency forecasts, and the “cost of hedging” are the most important factors affecting currency risk management. The report also compares the survey results with extant theories of interest rate parity and optimal hedging.