Client Manages To Save INR 24,900 Every Month

Client Manages To Save INR 24,900 Every Month

05 Jun 2021 12:28 PM
 

CASEA fruit exporter approached Myforexeye to better optimize forex risk management. He had an exposure of $300,000 every month and was banking with a large foreign bank in India.

SOLUTIONAfter connecting with the client, we learned that the client was being charged 4-5 paise extra per dollar and was paying a variable bank margin of 0.1% of spot. He was paying approximately 7.3 paise per dollar.

We advised the client to talk to his bank and fix the bank margin in paise instead of a percentage of spot because spot keeps fluctuating and he would be losing out on bank margin. After negotiations, his bank margin was fixed at 3 paise per dollar.

Furthermore, through our Transaction Process Outsourcing (TPO) service, the client was able to get accurate live market rates which helped him save 4-5 paise per dollar.

After switching to fixed margin and availing TPO services at Myforexeye, the client now saves INR 24,900 (300,000 × (0.043+0.04)) monthly.

VALUE ADDITION Through Myforexeye’s advice and TPO service, the client now saves approximately INR 24,900 every month.

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