A fastener and machine components’ manufacturer with exports mainly in Europe and the U.S. Client had to book EURINR export forward for EUR 2,30,000 with the bank. The client did not have a direct access to his bank’s Treasury and the forward contract was to be booked after negotiating rates with the banker at the Branch.
Myforexeye Value Addition:
Client had recently started using our TPO service and he connected Myforexeye dealer on call to the banker at their Branch. Myforexeye dealer asked the banker to quote the EURINR spot rate first. The banker quoted EURINR spot rate as 78.19 after taking quote from the Treasury. Our dealer argued that the EURINR spot rate was at 78.26. She then offered 78.20 as the best rate. Our dealer negotiated for a better rate but the banker turned aggressive saying that if you do not agree to this rate, you can opt to not book the forward contract at this rate adding that she can’t spend too much time in closing one deal. She further added to avail E-Forex facility of the bank and book forex deals using that platform.
EURINR spot had come to 78.22 by this time but the banker said that now the spot has come to 78.1950. Our dealer argued to quote the correct rate. But the banker resisted saying she doesn’t have access to live rates and she is quoting only what the Treasury is quoting her. After a lot of negotiations, the spot was locked at 78.20.
Myforexeye dealer then asked for EURINR forward premium for 75 days and the banker quoted 79 paise as the premium on which our dealer argued that the premium was 124 paise on the Reuters’ terminal. The banker immediately quoted 123.50 paise. This was a reflection of how the banks overcharge their clients on forex transactions who are not cognizant of the live forex rates. The client was satisfied with the service of Myforexeye as our dealer serviced the client to save approximately 45 paise on a transaction of EUR 2,30,000 that amounted to a saving of INR 1,03,500.
19 May 2020 12:06 PM
A cloth exporter based out of Tirupur booked around $100,000 of export forwards per month. The client’s bank margin was fixed at 10 paise. The bank had been quoting a cash spot rate of 10 paise above the margin. The client had recently signed our “FX
16 Nov 2019 04:30 PM
Delhi based manufacturers of institutional and home furnishings, fabrics and hospital textiles exporter with market base across the country and other Asian and European nations. The client had recently started using our TPO service and had to book a
05 Oct 2019 05:30 PM
A Pune based industrial Instruments importer engaged in manufacturing of Electrical/ Instrumentation Systems. The client regularly avails import funding in foreign currency from Overseas branches of Indian Origin Banks. The client shared a transactio
21 Sep 2019 06:14 PM
A New Delhi based electronic goods importer. The working capital cycle of the client is 180 days but the Import payments terms are at sight against DP documents. The client used to utilize the Cash Credit facility with a PSU Bank. The client had appl
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