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 conversion of the entire amount at a single rate and do multiple conversions wth increase in USD/INR levels that we were expecting.