Seven documented case studies. All based on actual engagements.
$237K
Saved in the first month by restructuring a forward strategy
$290K+
Annual savings after uncovering a hidden rate markup
$40K
Annual savings over a bank's "preferred" rates.
Case Study 1
How a Canadian Aerospace Company Eliminated the Risk of International Paper Checks
Industry
Aerospace Manufacturing
Problem
Major US customer paying by paper check, resulting in lost, stolen, and delayed payments
Result
Eliminated payment risk, faster access to funds, reduced admin burden
Services Used
Receiving foreign funds, dedicated named account setup
The Situation
A Canadian aerospace company was receiving regular payments from a major US manufacturer. Despite the size and sophistication of both companies, the payments were being sent by paper check.
The consequences were real and recurring: checks arrived late, checks got lost in the mail, and in more than one instance, checks were stolen. Each incident created administrative headaches, cash flow uncertainty, and direct financial losses. The company was spending significant time chasing payments that should have been straightforward.
What We Did
Castle Currency set the company up with a designated, company-named and numbered account for receiving electronic payments on our platform. The US manufacturer was given simple payment instructions to send funds electronically instead of by check.
No complex integration. No changes to the business relationship. Just a modern, secure payment path that replaced the paper-based process entirely.
PAYMENT RISK ELIMINATED
No more lost or stolen checks
No more mail delays or bank holds
Faster access to funds
Reduced admin time previously spent chasing payments
Competitive conversion rates on incoming foreign currency
The US manufacturer found the new process simpler and cheaper as well - a better experience for both sides.
Why This Matters
Getting paid by international customers shouldn't be difficult. Paper checks are slow, unreliable, and carry real risk. International wires are better but costly and time-consuming for both sender and receiver. Castle Currency provides a simpler, faster alternative. This company's experience with one of the world's largest manufacturers proves it works at any scale.
Case Study 2
"We Thought We Were Getting Preferred Rates." A $40,000 Wake-Up Call.
Industry
Mid-Size Business (Importer/Exporter)
Annual Currency Volume
$12 million
Problem
The company was being overcharged despite claims of preferred pricing
Result
$40,000 ongoing annual savings
Services Used
Rate analysis, platform onboarding
The Situation
A mid-sized company with $12 million in annual currency conversions had been using a major bank for all their currency transactions. The relationship was long-standing. The bank told them they were receiving "preferred" pricing. The company had no reason to doubt it.
What We Found
When Castle Currency reviewed the company's transaction history, we found the rates they were receiving varied considerably over time. What the bank called "preferred" was often above a fair rate for a company of its size. The gap was not minor.
The company was surprised. They had trusted the relationship and the bank's assurance. Nobody had ever looked at the actual numbers independently.
What We Did
The company moved their currency conversions to our platform with competitive, volume-based pricing and no hidden markups or random variations in pricing. The company now receives consistent pricing on each transaction - something they never had before.
$40,000 IN ONGOING ANNUAL SAVINGS
On $12 million in annual conversions, the switch delivered $40,000 in annual savings with no change to the company's operations. The company didn't need new processes or new systems. They needed an in-depth review of their transactions to see what they were actually paying.
Why This Matters
There is no standard definition of "preferred rates" or "wholesale rates" and no easy way for many businesses to verify. A one-time check is a start. But to know what you are actually paying - and whether it is fair - requires a more in-depth review. And be aware - providers may change their rates when customers aren't paying attention. Ongoing visibility is what protects you.
Case Study 3
The Problem Major Banks Couldn't Solve. We Solved It.
Industry
Investment Management
Problem
Excessive hedging costs, share class return variability, bank overpricing
Result
Reduced costs, improved hedge accuracy, actionable restructuring plan
Services Used
Consulting, hedge analysis, cost analysis, process redesign
The Situation
At a currency industry conference, the owner of an investment management firm approached Castle Currency during a round table discussion. His opening words: "I'm sure you won't be able to help me because none of the major banks I've talked to were able to — but this is the problem I'm having..."
The firm was using futures contracts through a major bank to hedge the USD/CAD currency exposure in their fund products. They had both USD and CAD share classes, and the returns between the two classes were showing significant and unexplained variability - as much as 2.54% in a single month. The firm couldn't isolate the cause, and the banks they consulted couldn't solve it either.
What We Found
Castle Currency conducted a detailed analysis of the firm's hedging trades, costs, and processes. Three significant problems emerged:
1. The investment company was being overcharged on futures trades. Castle Currency found that the average cost per trade had increased substantially over time. Because futures pricing is opaque and difficult to verify, the investment company was unaware of the excessive and variable pricing.
2. Imperfect hedging was causing major variability. The firm's hedging policy allowed for a threshold of allowable exposure. During periods of market volatility, the gap between the hedge and the actual NAV was creating swings of over 2% between share classes.
3. Timing differences were distorting reporting. The currency hedge and equities were being valued at different times of day. The currency market can move significantly in that gap, creating reporting discrepancies that had nothing to do with actual performance.
What We Recommended
Castle Currency delivered a complete restructuring plan that addressed all three problems: a more efficient hedging instrument, a method to maintain tighter hedge coverage, accountability measures to keep costs transparent, and process changes to eliminate the reporting discrepancies.
The plan included multiple implementation options with clear cost-benefit analysis for each approach.
COMPLETE HEDGE OPTIMIZATION PLAN
Identified hidden cost increases in opaque futures pricing
Pinpointed the cause of 2%+ share class variability that major banks couldn't diagnose
Delivered a concrete restructuring plan with multiple implementation options
Recommended policy changes to measure, monitor, and control ongoing costs
Provided a path to significantly reduce both costs and share class return variability
Why This Matters
Currency hedging for investment products requires precision that many banks and brokers don't deliver - and many firms can't verify. Opaque pricing, imperfect hedge ratios, and unexamined timing differences can create costs and variability that compound over time. A review of your hedging process is the only way to know whether it is working as intended.
Case Study 4
How a Small Change to a Forward Strategy Saved $237,000 in One Month
Industry
Industrial Retail Supply
Annual Currency Exposure
$200 million
Problem
The company was being overpriced on forwards with mismatched hedge durations
Result
$237,000 saved in the first month
Services Used
Consulting, strategy optimization
The Situation
A major industrial supply retailer with $200 million in annual currency exposure was using a combination of long-dated forwards and options to manage their currency risk. Their bank was helping manage all of it.
On the surface, the company believed they were well-managed. They had hedging instruments in place. They had a banking relationship. They felt covered.
What We Found
When Castle Currency reviewed their forward and options positions, three problems were immediately clear:
Excessive forward pricing. Forward contracts are significantly harder to compare than spot rates because the pricing involves interest rate differentials, tenor, and embedded bank margins. Many companies don't have a practical way to verify whether their bank's forward pricing is fair. In this case, it wasn't. The company was being overpriced on every forward contract, cutting into margins on each transaction.
Poorly chosen hedge durations. The forward durations didn't match the company's actual payment timing. The company was frequently exiting forwards early, which is effectively paying for the same hedge twice - once to enter at the wrong duration, and again to unwind and re-enter at the duration they actually needed. Every early exit was a cost the company was paying with no benefit in return.
Excessive transactions. The mismatch between hedge durations and actual needs was generating unnecessary transactions - each one carrying additional bank fees and spread costs. The company was losing money from the churn.
What We Did
Castle Currency restructured the approach: improved the pricing on forward rates, adjusted the durations to properly match the timing of expenses, and reduced the excessive transactions. The company switched a significant portion of their currency transactions to our platform which allowed them to consistently keep a better watch on rates. No new instruments. No added complexity. Just better pricing, better matching to the timing of expenses, and elimination of unnecessary costs.
$237,000 SAVED IN THE FIRST MONTH
On $10 million in forward transactions processed in the first month of the engagement, the improved pricing and restructured approach saved $237,000. The savings came from three sources:
Reduced pricing on forward contracts
Proper hedge durations matched to actual expense timing (eliminating costly early exits)
Fewer unnecessary transactions
Why This Matters
Forward contracts are where banks and providers make their largest margins on currency - precisely because many companies can't easily verify the pricing. This case demonstrates why a review of your forward strategy can produce immediate, measurable results.
Case Study 5
A $10 Million Acquisition Decision. Currency Was the Missing Piece.
Industry
Manufacturing
Situation
$10 million investment in US manufacturing capacity
Problem
Needed independent currency analysis before committing
Result
Complete currency impact analysis delivered
Services Used
Consulting, sensitivity analysis, risk assessment
The Situation
A Canadian manufacturer was evaluating a $10 million investment to acquire additional manufacturing capacity in the United States. The business case looked strong on the operational side, but the company needed to understand what currency would do to the picture - both to the purchase price and to the ongoing profitability of the US operation.
What We Did
Castle Currency was retained to provide an independent currency analysis. Our role was to deliver facts and analysis - not to recommend whether the acquisition should proceed. That was the company's decision to make with complete information.
The analysis covered:
Sensitivity analysis of currency rate scenarios against revenue and profit projections
Impact of various exchange rate levels on the effective purchase price
Assessment of what would be required to manage ongoing net profit exposure in USD
Capital exposure analysis - how currency movements would affect the value of the US investment over time
Scenarios ranging from favorable to adverse currency movements over multiple time horizons
COMPLETE CURRENCY IMPACT ANALYSIS
The company received a clear, independent picture of how currency would affect the acquisition across a range of scenarios. This included specific analysis of:
Revenue projections under different exchange rate assumptions
Profit impact at various currency levels
Purchase price sensitivity to rate changes
Ongoing exposure management requirements
The company was able to make their acquisition decision with full visibility into the currency dimension - something many companies overlook entirely.
Why This Matters
Major business decisions involving foreign currency (acquisitions, expansions, new markets) carry currency risk that many companies don't quantify until it's too late. An independent currency analysis before the decision is made costs a fraction of what a surprise currency move costs after.
Case Study 6
How a Furniture Company Discovered They Were Paying 3x the Expected Rate - and Saved Over $290,000 a Year
Industry
Furniture Manufacturing / Import
Annual Currency Volume
$50 million
Problem
Company being overcharged on rates by a bill payment consolidator
Result
$290,000+ annual savings
Services Used
Currency review, rate analysis, process improvement
The Situation
A mid-sized furniture company was processing approximately $50 million in annual currency conversions through a bill consolidation group, a centralized payment service that handles supplier payments on behalf of multiple companies. The bill consolidator had told the company they were being charged a set amount above the Bank of Canada noon rate.
The company had no reason to question it. The payments went out. The invoices got paid. Nobody was comparing the actual rates.
What We Found
Castle Currency conducted an independent analysis of the company's recent currency transactions, comparing the rates actually charged against market benchmarks.
The results were clear: the company was actually paying well above the stated markup. Across $50 million in annual volume, the excess alone represented over $193,000 in unnecessary cost every year.
Beyond the rate markup, Castle Currency also identified that conversions were entirely reactive - tied to invoice dates with no consideration of where the market was on any given day.
What We Did
Castle Currency addressed both problems:
Pricing improvement: Moved the company's currency conversions to competitive pricing with no hidden markups - eliminating the excess cost that had been embedded in the bill consolidator's rates.
Transaction improvement: The company hired us to provide custom currency strategies. We introduced a more deliberate approach to their transactions rather than converting purely when invoices were due. Based on our experience, we targeted an additional 20 points through better timing on their transactions.
$290,000+ IN ANNUAL SAVINGS
$193,200 from eliminating the hidden rate markup
$100,000 (targeted) from better transaction timing. The company has been a Castle Currency client for several years. The cumulative savings on their currency program has reached into the millions.
Total: Over $290,000 in recurring annual savings on $50 million in volume
The company didn't change their business. They didn't add complexity. They simply stopped paying a cost they didn't know they had.
Why This Matters
Many businesses assume their currency provider is charging what they say. This case shows why you should verify. The company was actually paying more than what was agreed. Nobody caught it until Castle Currency ran the analysis. If you use a bill payment provider, a bank, or any third party for currency conversions and you haven't had a review of your actual transaction rates - you may be in the same position.
Case Study 7
How Converting Foreign Currency Freed Up a Line of Credit and Saved $80,000 a Year
Industry
Importer/Exporter
Problem
Foreign currency holdings consuming line of credit capacity
A company with foreign currency exposure was holding onto foreign currency balances in their bank accounts. What they didn't realize was that those foreign currency balances were not being counted as an asset by their bank for the purpose of their line of credit. At the same time, the foreign currency wasn't earning interest.
The result: the company was tying up their line of credit capacity with money that was sitting idle and costing them in LOC interest charges.
What We Found
Castle Currency identified that by converting the foreign currency holdings to local currency, the company would accomplish two things: the converted funds would be recognized as an asset by the bank, reducing the outstanding LOC balance, and the freed-up credit capacity would give the company more financial flexibility - including the ability to place additional forward hedges when needed.
What We Did
Castle Currency recommended and helped implement a straightforward currency conversion approach that eliminated the idle foreign currency holdings, reduced the company's reliance on their line of credit, and freed up capacity for productive use.
$80,000 IN ANNUAL SAVINGS + ENHANCED FINANCIAL FLEXIBILITY
Reduced LOC usage and associated interest costs: $80,000 annually
Freed up credit capacity for additional hedging when market conditions warranted
No new complexity - just a smarter approach to how existing balances were managed
Why This Matters
Currency consulting isn't just about the rate you pay. It's about how currency operations affect your broader financial structure. Many currency providers would never look at your credit facilities or ask how your foreign balances interact with your banking arrangements. Castle Currency does - because the opportunities are often significant and completely overlooked.
Ready to See What Your Currency Activity Is Really Costing You?