On our blog, we’ve discussed how to compare various international transactions on an equivalent basis to account for the different impacts currencies can have on profitability [1]. The table below presents the value of currency risk management range for a sale of 1 million Canadian dollars (CAD) over a 3-month period ending January 31, 2025, in descending order. It’s the same sales amount, of course—but the currency risk varies significantly depending on the country you are considering for export (or import). Historical Currency Risk Range Across 23 Countries
For example, in the United States, the profit on a sale of 1,000,000 CAD was exposed to a currency risk range of 45,474 CAD. If you were expecting to generate a net profit of 100,000 CAD on that sale, over 45% of it would be at risk.
The currency risk range for each country (or currency) varies over time. For instance, the differential for Japan differs between the periods ending in January 2023, January 2024, and January 2025.
What remains constant, however, is the importance of currency risk and its impact on the profits of companies engaged in international trade.
See: Historical Currency Risk Range Across 23 Countries for a broader view of currency risk since January 2022.
[1] Currency Risk for SMEs: How to Assess Hidden Budget Risks?
You may also read:Currency Risk for SMEs: Budgeting and Market Performance Comparison Tool and Currency Volatility: Understanding the Scope of Exchange Rate Risk.