Case Studies

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A mid-sized Ontario trucking company paid for fuel in USD, but billed customers in CAD. Every month, currency swings between CAD/USD eroded their margins. In some months, a 5% move in the exchange rate wiped out tens of thousands of dollars in profit.

Clarus FX analyzed their FX exposure and discovered that their bank spreads alone were costing them over 30 bps extra per trade. We introduced a forward hedging program tailored to their payment cycles, and implemented a dashboard so the CFO could see their FX exposure at a glance.

• Protected over $250,000 in annual fuel costs from USD volatility.
   
• Reduced execution costs by 25% through transparent dealer pricing.
   
• CFO and finance team gained clear visibility into FX risk for planning and budgeting.
   

"We no longer worry about sudden USD swings eating into our margins. Clarus FX gave us clarity and control."

A Toronto-based importer/exporter was purchasing goods in EUR while selling finished products in USD. Their bank provided FX conversion, but spreads were hidden and rates were inconsistent. Quarterly, currency fluctuations created large swings in profitability, making it difficult to commit to long-term contracts with suppliers and customers.

Clarus FX conducted a spread analysis and uncovered significant hidden costs in the bank’s pricing. We designed a rolling forward contract strategy to lock in predictable exchange rates and aligned settlement dates with their actual cash flows. We also built a custom dashboard that highlighted exposure by currency and contract period.

• Locked in stable EUR/USD rates, giving confidence to sign 12-month supplier agreements.
   
• Reduced FX execution costs by 20–30% compared to bank spreads.
   
• Improved ability to quote competitive, consistent prices to clients overseas.
   

A Canadian consumer goods company was importing products from China (CNY) and selling into the U.S. market (USD). Their margins were squeezed by two volatile currency pairs (CAD/CNY and CAD/USD). Each shipment’s cost could swing by thousands of dollars, and the finance team struggled to forecast profit margins with confidence.

Clarus FX performed a full exposure mapping across their supply chain. We introduced:

• Forward contracts to lock in predictable CAD/CNY rates on supplier payments.
   
• A layered hedging strategy for CAD/USD revenue to smooth out inflows.
   
• A risk dashboard that gave real-time visibility on upcoming exposures and cash flow impact.
   

• Reduced FX volatility impact on gross margins by 40%.
   
• Gained ability to budget accurately and secure better terms with U.S. retailers.
   
• Uncovered and cut hidden bank spread costs by 25 bps per transaction.
   

"Before Clarus FX, every shipment felt like a coin flip on currency. Now we know our costs in advance and can negotiate from a position of strength."