Case studies. From our client work.
Each case is anonymised and follows the same sequence: we first established what FX was really costing the business, then looked for a better way forward.
An architecture practice making frequent international payments
The challenge
For this South African practice, FX was not an occasional cost. A high volume of payments abroad made it a meaningful one.
- Bank pricing was inconsistent, and spreads were materially above what the practice could access elsewhere.
- FX was treated payment by payment, rather than as one significant annual cost.
- With payments this frequent, service and execution support mattered as well as price.
Our approach
- Analysed past transactions to quantify the effective spread being paid.
- Benchmarked the bank’s pricing against specialist FX providers.
- Arranged dedicated FX support suited to a business paying abroad this often.
The outcome
A more competitive, transparent pricing structure was put in place.
A carbon-credit business buying US dollars for international suppliers
The challenge
Based in South Africa, the business typically converted several million rand a year, and considerably more in previous years.
- Bank spreads were around 1.7%, and the overall cost exceeded 2% on some transactions.
- Funds could take up to five days to be released, adding an operational problem to the cost.
- The business valued administrative simplicity, so cheaper pricing alone was not enough.
Our approach
- Analysed the bank's pricing and quantified the effective FX cost.
- Benchmarked the arrangement against specialist FX providers.
- Assessed providers on settlement speed, administration and service, as well as headline pricing.
Opportunity identified
Potential pricing below 1% was identified, compared with bank spreads of around 1.7%.
An NGO funded in US dollars, spending mainly in rand
The challenge
Multi-year donor funding arrived in scheduled quarterly tranches. The funding was committed; its value in rand was not.
- Bank conversions were costing approximately 1–1.6% in FX spread.
- Operational issues had led to delayed or cancelled payments.
- More importantly, USD/ZAR movements could materially change the rand value of future tranches, making programme budgeting difficult.
Our approach
- Analysed previous conversions to establish the true cost of the existing arrangement.
- Explored whether forward contracts against scheduled donor receipts could give greater budget certainty.
- Considered provider credit terms that could reduce the cash deposit required for hedging.
Opportunity identified
Alternative specialist providers offering improved pricing and service.
An importer buying regularly from suppliers in China
The challenge
Supplier payments created an ongoing need for foreign currency, which made FX part of the cost of the goods themselves.
- Exchange-rate movements between agreeing an order and paying the supplier could change landed cost and margin.
- With repeated transactions, even relatively small pricing inefficiencies added up over time.
- The existing FX arrangements had not been assessed against the wider specialist market.
Our approach
- Reviewed a representative set of supplier payments to understand existing FX costs.
- Benchmarked the pricing against alternative providers.
- Looked at how FX could be managed around known purchase orders, not only when payment fell due.
Opportunity identified
A more structured approach to pricing, execution and future currency requirements.
A fashion retailer converting foreign investment and paying suppliers abroad
The challenge
For this South African retailer, currency was going out and coming in at the same time, at significant volume.
- The two flows were treated as separate transactions, not as one overall currency position.
- On the supplier side, pricing differences could materially affect inventory costs.
- On the investment side, pricing differences could materially change what the capital was worth in rand.
Our approach
- Mapped both sides of the company’s currency flows, rather than analysing payments in isolation.
- Reviewed pricing on supplier payments and investment conversions, and benchmarked both against specialist providers.
- Considered how incoming and outgoing requirements could be managed as part of one FX strategy.
- Looked at reducing unnecessary conversions where appropriate, and improving visibility of overall exposure.
A better FX conversation starts with understanding what you have today.
ben@makoschafrica.com+27 (0) 79 279 5762
Whether you're making regular international payments, receiving foreign currency revenue or managing significant currency exposure, we'll help you understand whether your current arrangements can be improved.