Receiving Foreign Revenue
Common for exporters, SaaS companies, consultants
Your Situation: You sell to US customers and receive USD, but your expenses are in CAD. Revenue volatility when CAD strengthens.
The Challenge: When USD/CAD drops, your CAD revenue drops even though USD sales are stable. Budget forecasts become unreliable.
Our Strategy: Scenario-based hedging that increases coverage as USD/CAD approaches historical lows (unfavorable for you).
Example Rules:
- Conservative at high USD rates (1.40+): 40% max coverage, let it run
- Aggressive at low USD rates (1.30-): 90% max coverage, protect revenue
- Weekly hedging when rates are unfavorable, monthly when favorable
- Tenor-based targets: 100% for 0-3mo, 70% for 3-6mo, 50% for 6-9mo