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 to our TPO service and had an inward deal of USD 80,000.
Myforexeye Value Addition:
Myforexeye dealer made a call to the bank’s treasury to get the deal booked. The banker asked for the margin. Our dealer told the margin as 5 paise per U.S. dollar. The banker said that this margin was not updated in the bank’s system and added that he would quote the net rate. He quoted the net rate as 69.90. Myforexeye dealer argued that the USDINR prevailing spot rate was 70.06 and with 5 paise cash/spot and 5 paise margin to pay, the net rate should have been 69.96. The banker said that the spot rate was 70.00 and asked the dealer where he was referring for the rates. Our dealer said that he was looking at the rates on the Reuters terminal. The banker then started creating chaos saying that the spot rate was edging lower and the client would get even a lower rate now.
Myforexeye dealer told the banker that the USDINR spot rate is at 70.05 now but he did not agree and then our dealer asked him to connect with some other Treasury dealer. The banker said that you would still get the same rate as he claimed that he was quoting as per the actual rate prevailing in the market and transferred the call to some other dealer in the Treasury. The other dealer also quoted 69.90 and our dealer reiterated that the bank margin was 5 paise. The banker thereafter offered a net rate of 69.92.
Our dealer didn’t agree for the rate and argued that the USINR spot rate was still at 70.05. The banker claimed that the spot rate was at 70.02 on which Myforexeye dealer counter-argued that 70.02 was not even the day-low till that time. The banker then offered a net rate of 69.94. Our dealer insisted that the spot rate was 70.05 on the Reuters terminal and so advised him to not charge excess margin. The banker finally agreed and closed the deal at 69.95.
07 Sep 2019 03:03 PM
A large importer based in Delhi. The client had started a relationship with Myforexeye 6 months back. The client was getting extremely worried about persistent rupee weakness. Their import payment of USD 1 million was due for September 2019.
17 Aug 2019 05:53 PM
A South Indian Electric Vehicles manufacturer well known for selling battery operated two-wheelers. The company regularly imports various components required to assemble two-wheelers from different geographies of the world. Given the focus on green e
03 Aug 2019 02:13 PM
A Mumbai based X-Ray film importer with import turnover of INR 6 cr had to make an import payment of EUR 1,00,000 against the import of master rolls of x-ray film from Germany. The client deals with a PSU bank which has been charging card rate on all
20 Jul 2019 06:09 PM
A Surat based woven products’ manufacturer and exporter. The firm exports woven fabric, post bags, laminated bags, cement bags, and other industrial packaging products in the international market with an annual export turnover of INR 10 cr. The firm
29 Jun 2019 04:49 PM
Myforexeye has appointed ‘Referral Partners’ (RPs) across the country in order to bring users of foreign exchange closer to our technology platform. The Referral Partner in Kolkata referred close to 10 exporters and importers in last 1 month. Our tea
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