Why FX execution matters for business costs
A practical overview of what an FX audit reveals
Case studies
Posted on:
November 8, 2025
For over half of Swiss Businesses, currency exchange is part of everyday operations. A significant share of revenues is received in foreign currencies, while most operating costs, such as paying suppliers or employees, are incurred in Swiss francs (CHF). As a result, foreign currency funds are regularly converted into CHF to support day-to-day operations.
As these transactions are seen as routine, the overall impact of FX costs is often overlooked and considered an operational necessity, rather than something that requires deliberate review by finance teams.
One example of this is FX spreads. They reflect the difference between the market exchange rate and the rate applied by a provider. Because this difference is already included in the conversion, its impact often goes unnoticed
The example below illustrates a realistic scenario where FX costs accumulate over time and impact budgets, often without businesses realising it straight away.
How a Swiss manufacturer rethinks its FX setup
A Swiss watch component manufacturer supplies clients in the European Union and the United States. Annual turnover is around CHF 12 million, with approximately CHF 8 million received in Euros (EUR) and US dollars (USD).
Most operating expenses are in CHF, so foreign currency revenues are converted regularly throughout the year to cover domestic costs. Currency exchange is handled through the company’s main bank as part of its standard setup.
How FX spreads add up to a significant annual cost
In this scenario, the bank applies an average FX spread of around 1.5 percent over the year.
Applied to CHF 8 million in converted revenues, this results in annual FX costs of roughly CHF 120,000 on average. Over five years, this amounts to approximately CHF 600,000 and reaches CHF 1.2 million over ten years.
While each conversion may appear marginal, these costs add up over time and affect how budgets can be allocated.
What a 70% reduction in FX costs looks like
After reviewing its FX costs through an FX audit, the company reassesses its existing setup and starts using SwissFx for its international payments and currency management.
Under this new setup, FX pricing becomes more competitive across the same conversion volumes.
Previous banking setup | SwissFx setup | |
|---|---|---|
Annual conversion volume | CHF 8 million | CHF 8 million |
Average FX cost | ~1.5% | ~0.45% |
Estimated annual FX cost | ~CHF 120,000 | ~CHF 36,000 |
Annual difference | ~CHF 84,000 | |
Difference over 5 years | ~CHF 420,000 | |
Difference over 10 years | ~CHF 840,000 | |
What finance teams can learn
FX conversion costs are often paid without a second thought and treated as an unavoidable part of international activity.
As this example shows, reviewing how FX-related processes are managed can make a meaningful difference, without requiring significant investment or operational disruption.
In this context, an FX audit goes beyond spread analysis. It enables finance teams to review how their international setup truly operates and identify opportunities for improvement over time.