Forward contracts help Romanian trade companies mitigate foreign exchange risk and currency volatility by locking in a fixed exchange rate for future payments to their suppliers, offering stability amid currency market fluctuations.
Romania is also surpassing the iBanFirst Group in forward transaction value growth. In the first 10 months of 2024, the total value of forward transactions conducted by Romanian companies rose by 69% compared to the same period last year, reaching over €125 million. In contrast, the Group's overall growth rate was 27%, with forward transactions totaling €1.67 billion. The total value of foreign exchange transactions by Romanian companies on the iBanFirst platform in the first 10 months increased by 94%, from €615 million to over €1.19 billion.
„We are seeing a significant shift as larger Romanian businesses, alongside SMEs, increasingly adopt digital solutions to streamline operations, mitigate risks, and secure more favorable exchange rates. This agility and forward-thinking approach distinguishes Romania from Western markets, where companies still tend to rely on traditional financial service providers. We are honored that these companies have chosen to trust iBanFirst with their foreign exchange transactions and cross-border payments,” said Alin Latu, Country Manager Romania and Hungary at iBanFirst.
As more Romanian are involved in import-export operations or focus on cross-border expansion, they are adopting fintech solutions earlier than many of their Western European counterparts, allowing them to access global markets faster, operate more efficiently, and achieve significant cost savings. The local fintech market is in the early majority phase, with a 35% adoption rate, demonstrating that fintechs have proven to be reliable, even encouraging risk-averse businesses to integrate these technologies into their operations.
Top currencies used by Romanian companies for international payments
Romanian businesses using iBanFirst need mainly US dollars (USD) and euro (EUR) for international payments, with growing usage of regional currencies, such as the Bulgarian lev (BGN), and more exotic currencies like the Chinese yuan (CNY) and South African rand (ZAR). While the euro remains dominant for regional trade, fintech solutions like iBanFirst are essential for handling multi-currency transactions beyond the eurozone.
The top countries Romanian companies pay through iBanFirst include Germany, Italy, and China, while France, Hungary, and Poland are the leading sources of incoming payments. According to recent data from Romania's National Institute of Statistics, Germany is Romania's largest trade partner for both imports and exports. China and Turkey remain significant partners, particularly in imports, highlighting the role of fintech in facilitating Romania's diverse trade network.
