Scenario
An up market chain of kitchen retail stores imports contemporary kitchens from Germany and Italy. The suppliers invoiced the Kitchen company in Euros on a monthly basis. The owner and founder of the business calculates throughout the month an average amount of 75,000 Euros which needs to be paid between two suppliers. In the past they found the bank provided a very limited service to aid their foreign exchange exposure and did not offer any tools to pay for their Euros other than a spot contract by fax which would only inform them of the exchange rate once the sterling had debited their business account.
Alternative
Currency Today allowed the client to purchase currency by placing a limit order. A limit order was placed in the market and enabled them to buy Euros when the market reached a required level, higher than the prevailing exchange rate. After discussing their options with their dedicated broker this enabled them to monitor the market 24 hours a day 7 days a week and only buy if the rate was achieved (filled) at the required exchange rate. For example when the market was trading at 1.15 on the 22nd July 2009 costing £65,217 for €75,000 the company was able to place an order on this date to buy €75,000 at 1.1650. On the 29th July 2009 1.1650 became available in the market costing £64,377 saving £840.
Outcome
The company worked with Currency Today to reduce costs and protect profit margins. Currency Today provided independent news specific to their current requirements allowing them to seek a more convenient time to carry out their foreign exchange transactions. Having a personal broker at their disposal provided human contact and communication on a when and how basis every stage of the process.
Like the kitchen retail company your business can benefit from a limit order and obtain a more attractive exchange rate...