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.
15 Jun 2019 05:00 PM
Case: A Delhi based leading export house engaged in the manufacturing and exporting of garments. The company has export receivables of around USD 100k – 150k each month. The company had an inward remittance of USD 15,000 recently for which the owner
01 Jun 2019 03:38 PM
A Surat based client engaged in manufacturing and wholesaling of a wide range of polyester yarn. The company exports products to Turkey, Jordan, Gulf Regions and has foreign currency receivables in the U.S. dollar. The client had recently subscribed
04 May 2019 06:18 PM
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 contrac
20 Apr 2019 04:05 PM
A Mumbai based chemical solvent importer regularly borrows funds in foreign currency backed by LC under Supplier’s credit route. The payments are made at sight to the beneficiary by the overseas lender which extends trade credit to the client for 90
06 Apr 2019 05:43 PM
A New Delhi based importer and distributor of Engineering plastics with an annual turnover of INR 1000+ crores. The company imports plastic resin from
22 Mar 2019 05:18 PM
Client is an exporter of medical equipments based in Hyderabad with exports worth INR 250 crores annually with exposures in USD and EUR. Client was de