We manage an annual procurement of $200 million in aviation parts and fuel. Foreign currency transactions are a critical part of our operations, but with a Treasury team of just two people, effectively managing currency risk has always been a challenge.

While we have relationships with multiple banking partners and access to competitive pricing, the support from these banks has been minimal. Their role has largely been transactional, with little guidance or insight into how we could better protect ourselves from currency market volatility.

Recognizing the gap, we found a partner who could help us manage foreign exchange risk more strategically. What we found was a team that truly understood our business needs and offered solutions tailored to our operations.

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Key Benefits We Experienced:

1. Transparent and cost-effective pricing: Unlike many providers, there were no hidden costs. We didn’t have to worry about setup fees, maintenance charges, or transaction costs, which made budgeting straightforward.
2. Proactive and expert service: This team became an extension of our Treasury department. They didn’t wait for us to call—they actively monitored currency markets on our behalf and reached out with timely advice. Using insights gathered from their network of tier-one banking relationships, they helped us understand market trends, forecast short- and medium-term movements, and implement strategies to reduce our risk exposure.

For a business like ours, even a slight shift in currency rates can have a significant impact. For example, if the market moved just 2% against us on $50 million in transactions, that would mean a $1 million operational loss. The stakes are high, and we simply don’t have the resources to monitor these fluctuations in real time. This partnership ensured we stayed ahead of potential risks and made informed decisions.

What stood out the most was their ability to complement our existing banking relationships. There was no pressure to replace our banks; instead, they worked alongside them, ensuring we received the highest level of service without disrupting our established processes.

This collaboration has not only safeguarded our operations against currency volatility but also freed up valuable time for our Treasury team to focus on other priorities. It’s been a game-changer for our business.

PS for privacy reasons, the company name is not disclosed but in a personal call we are happy to share the reference.