How AI Can Support Managing Foreign Exchange And Interest Rate Risks

In this episode of The Treasury Update Podcast, Paul Galloway, Senior Advisor at Strategic Treasurer, discusses the role of AI in managing foreign exchange and interest rate risk. He begins by outlining key risks such as geopolitical uncertainty, market liquidity, and central bank policies, emphasizing the importance of forecasting and monitoring these factors. Galloway then explains hedging objectives and various hedging tools, including forward contracts, options, and currency swaps. The conversation shifts to the foundations of AI, highlighting machine learning, generative AI, and agentic AI, and how these can automate tasks, improve forecasting, and provide real-time insights. Galloway concludes by explaining how AI can assist in monitoring, predicting, and automating hedging processes, as well as evaluating counterparty exposures, ultimately making risk management more efficient and proactive.