Currency Chaos Hits Small Businesses Harder Than a Bad Hair Day
Recent swings in exchange rates have raked up a storm for UK SMEs, wiping out hefty profits and forcing a rethink of overseas trading tactics.
How Bad Is It?
- 54 % of surveyed SMEs say they’ve felt the sting of volatile rates in the last 12 months. Their average loss? A staggering £53 k.
- 53 % admit that £20 k has slipped through their fingers in 2025 alone.
- For micro‑firms (1–9 staff), the hit is worse: 72 % string a loss report.
- Service‑sector businesses don’t get a breather – nearly 65 % feel the tugs of currency swings, 11 pp more than the average SME.
What’s the New Game Plan?
Half the pack is pivoting. 58 % of SMEs are tweaking their FX setup to steer clear of the jagged market. Meanwhile, 59 % of those doing cross‑border deals are ditching the U.S. dollar for euros or sterling – a smart move to keep the dollar drama at bay.
Why Europe Now?
There’s a clear drifting toward the continent. 60 % of firms surveyed are leaning more into European trade, driven by the unpredictable global scene.
Expert Take
Michael McGowan, the big‑shot Managing Director at Bibby Foreign Exchange, paints the picture: “We’re in a currency rollercoaster that won’t rekindle until the great‑depression era. A badly timed swap can gobble up a small business’s margins. The answer? Mix up your partners, tweak your FX tactics, or better yet, do a bit of both.”
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