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. This makes it particularly important for any business dealing with imports and exports to manage the effects of foreign currency movements across these markets.
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 so keeping on top of the exchange rate fluctuation between different countries and currencies is essential to secure a profitable transaction.
Manage rate fluctuations
Speak to a specialist at NewbridgeFX to discuss our solutions for online money transfer and managing foreign currencies.
Exchange Rates – What Influences Them?
If you want to protect your business against exchange rate 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 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 benefits exporters. However, if you are dealing in both, then you need to make sure you identify the right balance.
Our specialist teams can help importers and exporters monitor the foreign exchange market for any changes to ensure the best possible rates for transactions are secured, as well as help you understand the impact of exchange rates on import and export transactions.
Making Vital Payment Decisions
One of the key aspects of reducing the risk of foreign exchange fluctuations is how you deal with the online money transfer, as an importer or an exporter. 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 manage the currency conversion locally.
Risk Management :
Foreign Exchange Management
Once you have enhanced your knowledge on foreign exchange 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 foreign exchange market movements
- Implement your chosen methods to every market that you trade with
- Identify the targeted rates or your aims for exchanging foreign 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, NewbridgeFX 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 currency exchange rate fluctuations, 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 contracts involve an immediate money transfer, whilst forward contracts allow you to secure an exchange rate today to complete the transfer at a specific later date within 12 months.
Importers and Exporters
We always strive to get you market-leading exchange rates that are available at the time, this would be no different when booking regular payments.
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 when sending money overseas, and are ways for businesses, and individuals, to manage and mitigate currency risk.
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.
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.
Make Fast & Secure Payments To Over 200 Countries
Real time Swift and local payments are settled the same day, within minutes of processing (currency/country dependant), and payment tracking capabilities allow you to keep updated on the payment status.
Hold multiple currencies and access balance information in supported currencies. Receive, convert, send and move money between your multi-currency accounts without making payments.
Convert Over 100 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 impact the foreign exchange market.
Real-time Reporting And Tracking
View and track all conversions, payments and incoming funds using our online platform, and receive email notifications when funds have been received, conversions processed and payments released.