Paper importer - Transaction process Outsourcing

Paper importer - Transaction process Outsourcing

30 Jun 2018 03:47 PM
Myforexeye Research Report


Gujarat based paper importer having an exposure of INR 50 cr and is banking with a private bank with an agreed margin of 10 paisa. They were not using any live inter-bank terminals to cross check rates while transacting with the bank. They are having small token size of around $ 40,000-50,000.

Myforexeye Value Addition

We had a detailed meeting with the management to understand business and the ongoing risk management process. Also informed them about the inter-bank live terminals and opaqueness in the forex market.  In the very first import payment of $ 42627.68 the bank offered a rate of 68.57 to them. They checked with us if the above rate as quoted by the bank is fine, the live rate was 68.24 and after negotiating with the bank they managed to get a net rate of 68.33.

In the next transaction we took the authorised person of the company on call with the bank and using our live interbank terminals negotiated a spot rate of 68.01 for them with a margin of 10 paisa. Have also advised them to negotiate a margin of 5 paisa with the bank. We further ensure end to end support to our clients helping them in reporting the transaction to their branch.

Advised client to subscribe to our Product namely TPO (Transaction process outsourcing) wherein the client authorises our dealers to book rates against their Forex transaction on behalf of the company. Our dealer transacts using live inter-bank terminals to negotiate with the bank and get the best rate for the client. TPO is a unique product of ours whereby we provide arrangement for transacting on behalf of our clients to negotiate the best live rate against their transaction.

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