A Delhi based leading export house engaged in the manufacturing and exporting of garments. The company has export receivables of around USD 100k – 150k each month. The company had an inward remittance of USD 15,000 recently for which the owner of the company approached Myforexeye to get the best rate fixed at the bank as a trial transaction by Myforexeye.
Myforexeye Value Addition:
Myforexeye dealer called the Relationship Manager of the company at the bank to get the USD/INR inward transaction closed. The RM quoted 68.65 as the net rate. Myforexeye dealer argued with the RM that he was quoting the TT buying card rate and that the threshold limit of fixing a forex transaction at card rate of the bank was USD 5000. In reply, the RM said that the bank gives 10 paise betterment on the card rate to preferred customers but he has already given a 25 paise better rate than the card rate of 68.40. He even disagreed to the concept of threshold limit for doing forex transactions at card rate saying that irrespective of the foreign currency amount, the bank charges either the card rate or a rate 10-25 paise better than the card rate.
Myforexeye dealer told the RM that the prevailing USD/INR market spot was 69.60 as reflected on the Reuters Terminal and a cash rate of 69.55. The RM said asked our dealer to check the TT Buying card rate for USD/INR on the bank’s website saying that this is the rate the bank gives and the betterment on these rates is solely at the discretion call of the bank. Our dealer didn’t agree to close the deal at the rate quoted by the RM. The RM then transferred the call to the Branch Manager. Our dealer told the Branch Manager that the company receives around 100k-150k US dollars each month and the company won’t pay such a huge margin of 90 paise on this transaction. The Branch Manager said that he would check the inter-bank rate (market rate) with the bank’s Treasury and get back. After a round of negotiations, the deal was closed at a net rate 69.25, paying a margin of 30 paise on the market spot rate of 69.60 and with a cash-spot of 5 paise.
The owner of the company was satisfied with our efforts to reduce the margin by 60 paise on this transaction thereby saving INR 9000. Myforexeye dealer made the owner of the company aware that he had paying as much as 90 paise on all forex transactions and with an annual turnover of around USD 1.8 mio, the company incurs an unanticipated loss of approx. INR 16.2 lacs as a forex fee to the bank. The client has signed our TPO service and we have informed the client to get the margin on forex transactions fixed with the bank.
07 Sep 2019 03:03 PM
A large importer based in Delhi. The client had started a relationship with Myforexeye 6 months back. The client was getting extremely worried about persistent rupee weakness. Their import payment of USD 1 million was due for September 2019.
17 Aug 2019 05:53 PM
A South Indian Electric Vehicles manufacturer well known for selling battery operated two-wheelers. The company regularly imports various components required to assemble two-wheelers from different geographies of the world. Given the focus on green e
03 Aug 2019 02:13 PM
A Mumbai based X-Ray film importer with import turnover of INR 6 cr had to make an import payment of EUR 1,00,000 against the import of master rolls of x-ray film from Germany. The client deals with a PSU bank which has been charging card rate on all
20 Jul 2019 06:09 PM
A Surat based woven products’ manufacturer and exporter. The firm exports woven fabric, post bags, laminated bags, cement bags, and other industrial packaging products in the international market with an annual export turnover of INR 10 cr. The firm
29 Jun 2019 04:49 PM
Myforexeye has appointed ‘Referral Partners’ (RPs) across the country in order to bring users of foreign exchange closer to our technology platform. The Referral Partner in Kolkata referred close to 10 exporters and importers in last 1 month. Our tea
01 Jun 2019 03:38 PM
A Surat based client engaged in manufacturing and wholesaling of a wide range of polyester yarn. The company exports products to Turkey, Jordan, Gulf Regions and has foreign currency receivables in the U.S. dollar. The client had recently subscribed