case study3

Canadian Manufacturing Company Exporting $40 million annually to US, Europe, Australia

Problem

Currency movements lead to numerous missed budgets, lost sales and harmed profits. The company was taking action to protect itself but found information provided from financial institutions, “experts”, and financial articles was far too often wrong and conflicting. This lead to missed opportunities and taking action at the worst levels.

Solution

Castle Currency Management began providing its currency advice via our Custom Currency Strategy Service. Armed with an understanding of their risk tolerance and budget targets we developed specific strategies our client would simply forward onto the currency dealer at their bank each week.

Results

The client has significantly reduced the amount of time and stress put into trying to analyze and manage their currency. Castle Currency Management has added value to each currency exposure. Over the last 3 years our Custom Currency Strategies have added an average of $3,500,000 compared to unmanaged results and $1,400,000 compared to fully locking at budget rate.

"Denial is common tactic..."
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Business Risks Companies Face
"What types of risks can currency movements cause to a business?"

Currency Movement Risks
"What different types of currency movements should I be concerned of?"

Hedging Strategies
"You may already have strategies to manage your risk, see why Castle Currency provides effective strategies which can add to your existing ones"

Conversions - Best Rate
"you can capture a significant amount of money by improving the rate you get for conversion – let us help"

Risk Analysis
"It is important that you are managing the proper risk amount. We can help ensure it is neither too much nor too little"

Sensitivity Analysis
"Do you know what effect a significant currency move would have on your bottom line? We will show you then help you do something about it"

Risk Audits
"Have a third-party review your internal operations, it removes potential conflict and provides objectivity"

Currency Risk Management Plan
"Could you benefit from a Currency Risk Management Plan?"

Centralized Foreign Exchange
"Do you have one division buying USD at the same time another is selling?"

Training
"Could your team benefit from more knowledge of currency risks and how to mitigate them. We would love to show them how"

Budgeting Currency to Margins
"Does it not makes sense to customize your currency risk management strategies to meet your margin expectations and limitations?" We strongly believe it does "

Fully Managed Services
"We watch the currency markets 24 hours a day – why not focus your time on your core business?"

Benchmarking
"How can you be sure you are effectively managing your risk?"

Reporting
"Do you know what your risk is at any given time? Shouldn't you?"

Team
"Hire professionals who are experts at managing currency risk. Be aware of the difference between one who takes orders and conducts trades compared to one who analyzes not only the market but your specific business.

Risk Analysis
What is the worst-case scenario for your company right now?

Risk Management
"Denial is a common tactic that substitutes deliberate ignorance for thoughtful planning."

Currency Risk Management Plan
Developing an effective Risk Management Plan is an important part of any project

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