Companies dealing regularly with overseas suppliers or clients can lose a significant amount of their profits thanks to fluctuations in exchange rates, and September offered a perfect example of how much of an impact it can have.
Referencing to the above YouGov survey, the Scottish independent referendum had a dramatic effect on the currency markets – in particular, the relationship between sterling and the US dollar. In the build up to the essential vote, the US dollar had reached a new five year high of $1.71 on July 2 to then fall dramatically 11 cents on September 9. On this particular day, if you had to make a transfer of $100,000 this would have cost you an extra £4,020 when compared to a previous high.
For companies especially, it is vital to ensure you are getting a good exchange rate as it will help to reduce your costs and boost your profit margins. The City A.M. International Payments service, provided by Moneycorp, can offer rates that are typically 1-2pc better than you would get from a bank, which on a goods order worth £100,000 means you could save around £2,000.
In addition, you can use a range of services that will also help you plan your business costs for long periods of time. For example, you can guard against currency market fluctuations by using a ‘forward contract’ which will fix your exchange rate for as long as 24 months in advance. So you know that if markets move against you, your business and your profits will not suffer.
Every client is assigned a personal dealer who is an expert in currency exchange and will help you manage all of your foreign exchange requirements, including guidance on how best to deal with your currency needs. You will also have access to Moneycorp’s online foreign exchange and international payments platform – so even if you have left the office, you can still login and make transfers whenever it suits you best, 24 hours a day, seven days a week.
Get in touch with the City A.M. International Payments service to find out more. It is free to open an account, and there is no obligation to trade.