Finance · August 5, 2025

The dollar swings: how a small manufacturer tames currency risk

US deals are in dollars, and an exchange-rate move can eat up the margin that your sales work earned with effort. Simple protective measures are available to everyone.

How big is this risk

The EUR-USD rate typically moves five to ten percent over a year. If your margin is fifteen percent and the rate moves five at the wrong moment, you have lost a third of your profit without a single error in the sales work.

The risk arises from the moment you fix the dollar price and lasts until payment is received: with long payment terms, that can be months.

Three practical techniques

First: natural hedging, meaning keep dollars for dollar costs, for example US shipping and trade shows, so you exchange less. Second: a forward contract at the bank, which lets you fix a future exchange rate today; it is accessible and cheap for a small firm. Third: a currency clause in the contract that allows the price to be adjusted if the rate moves beyond an agreed limit.

Fourth, and simplest: shorter payment terms, which reduce the window in which the rate can surprise you.

Could your product sell in the USA?The first consultation is free: we show the real import numbers for your category and a few sample buyers.

What not to do

Do not speculate: waiting for the rate to improve is a casino, not financial management. And do not price with an old rate: make every offer at the day's rate with a small buffer.

Let's talk about your export plan

The first consultation is free: together we'll see who in the US already buys your product and how to reach them.