A NCR based Original Equipment Manufacturer (OEM) having forex exposures of 50cr. The finance team refers online platforms to keep a watch on exchange rates and are unaware about live inter-bank terminals.
Myforexeye Value Addition
Had a detailed meeting with the management and finance team to discuss their current forex management process. Educated them about the inter-bank live terminals and opaqueness in the Indian forex market regarding exchange rates. The management decided to do a trial – for an import payment of GBP 1lakh. Initially, their bank offered a rate of 86.78. They checked with us regarding the on-going live rates – the live GBPINR rate at that time was around 85.80. They negotiated the exchange rates and the bank finally offered 86.24. Since their bank was not offering fair exchange rates to them, we requested them to direct this transaction to us. We took the authorised person of the company on a conference call with the bank’s forex dealing room at Mumbai and using our live terminals, we were able to negotiate an exchange rate of 85.78, with an inter-bank margin of 4 paisa – net rate of 85.82. We explained the concept of inter-bank margin and asked them to negotiate a fixed margin with their bank. With our intervention, we were able to save 96 paise per GBP – Rs. 96000 in this case.
Informed the client that we have a regular service namely, Transaction process outsourcing (TPO), which ensures accurate and transparent exchange rates for all forex transactions. Recommended the client to subscribe to this product. The client authorises Myforexeye dealers to execute exchange rates on behalf of the company for all forex transactions. Our dealer transacts using live inter-bank terminals to negotiate with the bank and get the prevailing real-time exchange rates for the client. All the transactions are recorded for easy data retrieval and rate audits.