Currency fluctuations can have a huge impact on the day-to-day running costs for your business and create excessive delays. At Swift FX, we provide solutions across a range of contract types to keep your transfers moving quickly and ensure you transfer with minimal exposure.
This scenario has been perfectly highlighted by one of my clients who recently took advantage of the drop in value for the Pound and fixed a forward contract to sell US Dollars. The client, a well respected production company, is due to receive US dollars in the coming weeks and was able to fix a rate during the market turmoil created by the mini-budget at the end of September.
These contracts give the client the ability to draw on their position at any time between fixing the exchange rate and the agreed settlement date. If the client was to draw on the position today, the net gain by pre-agreeing the rate and fixing in September, compared to selling US dollars at today’s spot rate, is just over £22,500 – money that can be retained in the business.
Of course there is no guarantee these gains will always be seen but it highlights how the use of a well timed forward contract and having your broker keeping you constantly updated on market movements can allow for some significant benefits for you and your business.
Get in touch with me to learn more about how Swift FX can keep money in your business.
+44 (0)1442 773 340