Importers and Exporters Foreign Exchange

Imports & Exports:
Target an Exchange Rate

If you are a business that operates as an importer or an exporter, or maybe both, then you are going to need to ensure that you monitor foreign exchange (FX) fluctuations as they can have a big impact on your margins and profits. According to the Federation of Small Businesses, the United States (46%), Germany (38%) and France (36%) have been identified as the key target markets for UK based exporters and importers over next three years. As a result, this makes it particularly important to manage the effects of foreign currency movements.

One of the main risks for importers and exporters comes with buying goods and services in a country with a strong currency and then selling in a country with a weaker currency. Any significant movements in either direction could have severe implications for margins and profits.

Types:
Market Order Options

Speak to a specialist at NewbridgeFX to discuss the Market Order options available to you.

Exchange Rates – What Influences Them?

If you want to protect your business against foreign exchange fluctuations then it is vital that you understand the factors that influence change. Therefore, you should actively track economic policies and data releases in those countries you utilise, and this would include interest rate changes and any alterations to the government. Along with this, increases in inflation and economic growth can also play a part. It is also imperative that activity at home is also monitored such as debt levels or interest rate changes. Therefore, it can help to remember a simple rule whereby a strong pound is more favourable for importers while a weak pound benefit’s exporters. However, if you are dealing in both, then you need to make sure you identify the right balance.

Making Vital Payment Decisions

One of the key aspects of reducing the risk of foreign exchange fluctuations is how you make international payments and how you’re paid. An importer will need to determine if there are any products that can assist with managing their FX exposure, such as being able fix an exchange rate when purchasing from a supplier at a future forward date (Forward Contract), or immediately when the time comes to pay them (Spot Rate). For a UK exporter, they would need to decide if they will charge for goods in Pound Sterling or in the currency where the goods are being sent, and then managing the currency conversion locally.
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Risk Management :
Market Order

Foreign Exchange Management

Once you have enhanced your knowledge on FX fluctuations and have implemented your payables and receivables, you will then need to identify a way of managing the currency conversion that works best.

You will need to:

  • Seek out the right methods that enable you to mitigate FX movements
  • Implement your chosen methods to every market that you trade with
  • Identify the targeted rates or your aims for exchanging currencies
  • Continually review your strategy to manage changes in market conditions.

It does not matter whether you are new to trading with other countries, or you are an established business that has been doing this for some time, Newbridge Foreign Exchange can help you. With the help of our team of experts, we can assist and support you in managing international transactions to maximise your margins, and reduce the risks involved in the currency markets.

Implementing Hedging Where Required

Importing or exporting comes with risks, and naturally you are going to need to do all you can to reduce these risks, as that can help you to minimise losses. It is possible to enter into financial contracts that protect from sudden changes in currency exchange rates, regardless of whether they are expected or unexpected, and these are known as hedging strategies.

The products we offer such as spot trading, booking forward contracts and limit orders are all part of the available hedging strategies open to you. Spot trading will involve the purchase or sale of a foreign currency on the spot. While forward contracts focus on fixing the exchange rate before settling at a later date. Further information on our products and services can be found here.

FAQ:
Market Order

Answer

We always strive to get you the best exchange rate available in the market, this would be no different when booking regular payments. 

Answer

Yes, you will receive login details to access our state of the art online platform, which you can use to make currency conversions and process international payments.

Answer

Most payments settle within minutes of processing, although some currencies or countries can take up to 24 hours to clear.

Answer

Yes, you can convert over 45 currencies and make payments to over 200 countries worldwide. You can send different currencies to the same client, or make payments to many different clients at the same time. 

Products:
Manage Risk

NewbridgeFX offers a specialist service in the deliverable foreign exchange market, promoting a range of products and services, available online or over the phone. Our products have been designed to meet the needs of our clients. A lot of these products are ways for businesses, and individuals, to manage and mitigate currency risk, and are used frequently during times of increased volatility. Alongside up to date foreign exchange related market news, which works in tandem with our range of products. 

Spot Contract

Lock in an exchange rate for immediate onward settlement. Funds can be received the same day.

Forward Contract

Lock in an exchange rate today, but for settlement at a later date that suits you, up to 12 months in the future.

Market Order

We monitor the markets real time and take action to trade between currencies when your desired rate is achieved.

Rate Alerts

Set an alert for phone or email notification when an exchange rate has be achieved to take advantage at the best time.

Benefits:
NewbridgeFX

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Multi-Currency Account In Your Company Name

Receive funds from your customers in to your own named collection account, using one account number for all currencies, or a local in-country account number still in your company name.

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Create And Manage All Your Beneficiaries

Add and manage your beneficiaries, perform bank account validation & verification checks as you enter your beneficiary details & bulk upload multiple beneficiaries via a CSV file.

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Make Fast & Secure Payments To Over 200 Countries

Real time Swift and local payments are settled the same day, within minutes (currency/country dependant) and payment tracking capabilities allow you to keep updated on the payment status.

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Multi-Currency Balances

Hold multiple currencies and access balance information in supported currencies. Receive, convert, send and move money between your multi-currency accounts without making payments.

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Convert Over 45 Currencies, 24/7, Using Multiple Devices

We provide informative, up to date market news, including updates on currency movements, upcoming economic events and announcements that can impact the foreign exchange market.

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Real-time Reporting And Tracking

View and track all conversions, payments and incoming funds using our online platform and receive email notifications when funds received, conversions processed and payments released.

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