North-India based oilfield equipments’ manufacturer. The client received an export payment of around $ 3 mio in September 2018. The client was watching the USD/INR levels for the conversion.
Myforexeye Value Addition :
The client approached Myforexeye for our view on expected USD/INR levels in near future. On the basis of fundamentals and technical analysis by Myforexeye team, rupee weakness was expected in near term. As the client was not in immediate need of cash, we suggested the client to hold the receivables in EEFC account. We told the client to go for less encashment of USD to INR initially and gradually encash the receivables.
In September, a total of $ 1 mio was converted with multiple conversions at an average rate of 72.00 rupees per US dollar. When the USD/INR levels went up beyond 74.00 in October, we suggested the client to go for gradual encashment before the mandatory month end EEFC conversion. In October, a total of $ 1.1 mio has been converted at an average rate of 73.43 rupees per dollar.
Myforexeye team was able to judge the market correctly and the client was satisfied with our view to not go for the conversion of the entire amount at a single rate and do multiple conversions with increase in USD/INR levels that we were expecting
13 Jun 2020 03:43 PM
A Tiruppur based fabric exporter had booked forwards expiring on May 29th, 2020 but due to lack of inward remittances, he had to roll over the forward contracts. The challenge encountered by him was the uncertainty in the Rupee spot price and the sev
05 Jun 2020 10:57 AM
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
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