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 had an inward receivable of USD 26,000. The client had recently started using the TPO service of Myforexeye.
Myforexeye Value Addition:
Myforexeye dealer called the bank’s Treasury to close this inward deal. The banker quoted a rate of 69.10. Myforexeye dealer asked what spot rate is prevailing in the market to which the banker replied that the USDINR spot rate is 69.53. Having said that, he was charging a margin of 40 paise on this transaction with 3 paise cash/spot payable. Myforexeye dealer argued that a margin of 8 paise was charged in the previous deal. The dealer then said that the approval of 8 paise margin has expired, adding that in cases where the export turnover is less than USD 1 million and the margin is not sanctioned, the bank charges a margin of 40 paise on all forex transactions.
Myforexeye dealer told the banker that the annual turnover of the company is more than USD 1mio to which the banker responded that because your margin approval has expired, the bank would charge a margin of 40 paise only. Myforexeye dealer told the banker that the application for renewal of margin has already been sent to the branch and the sanction is under process, adding that we won’t pay a margin of more than 8 paise that is being paid for all forex transactions. After this round of negotiations, the deal was finally closed at 69.40 paying an 8 paise margin only as the USDINR spot rate had come to 69.51.
The client was satisfied with our service as the firm saved a valuable sum of INR 8000 on this particular transaction with the help of TPO service offered by Myforexeye.
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