A Delhi based metal importer had import payments of 3-4 million dollars scheduled every month. The client was getting extremely worried about the weakening rupee. The rupee has already depreciated 7.5% in 1.5 months. With growing uncertainties in the market due to COVID-19, he wanted to be sure of not incurring any more losses.
In this way, the client was protected from adverse currency movement- an increase in the USD/INR rate (The monthly change in the pair is more than 60 paise) and had an upside potential- if rupee appreciated.
The maximum loss he would have had to bear was of the premium paid - INR2.4 million (0.697*3,500,000). But looking at the uncertain circumstances, it was not a big cost for the protection he got. Thus, the importer was hedged from rupee depreciation by gaining protection from the downside.
By following the advice of Myforexeye team the client was able to protect his exposure from the prevailing market uncertainty while keeping his upside potential open.
24 Dec 2020 12:21 PM
Trade call given my Myforexeye on 10th November was to sell GBPUSD 25th November Futures.
17 Dec 2020 03:06 PM
A Spansih Exporter/Importer was on a trial for the Transaction Processing Outcourcing (TPO) service. His Bank was ICICI bank and was charged a margin of 3 paisa.
19 Nov 2020 12:01 PM
An IT services importer had his account with HDFC bank. He did his forex transactions through HDFC bank. We reached out to him with our services.
06 Oct 2020 11:28 AM
Tirupur based textile exporter had to import Solar Panels from China. Duty was very high. The client had to make a choice regarding funding of the import.
15 Sep 2020 12:27 PM
An importer based out of Delhi had taken up TPO and Advisory services from Myforexeye. He had an import payment of $500,000 ten days later which he wanted to hedge using multiple forward contracts.
17 Aug 2020 07:31 PM
A textile-manufacturing company based out of Tamil Nadu has a large scale domestic business and recently decided to enter the international market. Belonging to a small town and new to foreign currency exposure, they had little awareness of Forex. Th