After eight years away from Argentina, Sam Hewson, Citibank’s Head of FX Sales, returned to the country amid heightened volatility in both international markets — driven by the AI boom, the U.S. elections, and the war in the Middle East and the domestic market, which is increasingly focused on next year’s elections.

At Citi’s offices in Buenos Aires, Hewson spoke with the Herald about developments in the global foreign exchange (FX) market, which has experienced exceptional volatility over the past 12 months.

“The FX volumes we’ve recorded this year are the best we have seen since 2010 in our global franchises,” he said.

He noted that rising geopolitical tensions and risks are creating greater volatility, forcing clients “to be more thoughtful around their hedging and their risk management.”

From a geopolitical perspective, he said the need for resiliency has never been greater, as clients “will no longer have a single geographic supply base for their production” following the “previous shocks that they’ve been through.”

This means that exposures have become “more complex” due to the diversification of supply chains, greater logistical challenges, and the need to operate across multiple currencies in a “dynamic, evolving space.”

As a result, he argued, this environment has increased the need for more active risk management, as well as greater hedging.

Carry trades: The dollar’s diminished appeal and growing interest in Latin America

At another point during the interview, Hewson said his clients “don’t have great conviction on the dollar in general” when considering carry trades involving the U.S. currency.

He emphasized, however, they have more stronger conviction in........

© Buenos Aires Herald