A Tiruppur based fabric exporter had booked forwards expiring on May 29th, 2020 but due to lack of inward remittances, he had to roll over the forward contracts. The challenge encountered by him was the uncertainty in the Rupee spot price and the severe liquidity crunch he was amidst.
The usual approach during a forward rollover is to aim for a higher spot so that the forward rate received is as high as possible so that even if it’s lost now it will be covered at the time of forward utilization. The aftermath in the client’s situation was incurring heavy cash loss on cancellation during times of liquidity crunch. The client would have needed funding to pay for the cash losses incurred by him.
Myforexeye advisors suggested him to target a lower spot and wait until forward maturity date as huge dollar inflows were expected on account of FDI.
Since the client was a TPO customer our dealing desk executed the deal and negotiated the cancellation rate of 75.56 after adding the bank margin.
24 Dec 2020 12:21 PM
Trade call given my Myforexeye on 10th November was to sell GBPUSD 25th November Futures.
17 Dec 2020 03:06 PM
A Spansih Exporter/Importer was on a trial for the Transaction Processing Outcourcing (TPO) service. His Bank was ICICI bank and was charged a margin of 3 paisa.
19 Nov 2020 12:01 PM
An IT services importer had his account with HDFC bank. He did his forex transactions through HDFC bank. We reached out to him with our services.
06 Oct 2020 11:28 AM
Tirupur based textile exporter had to import Solar Panels from China. Duty was very high. The client had to make a choice regarding funding of the import.
15 Sep 2020 12:27 PM
An importer based out of Delhi had taken up TPO and Advisory services from Myforexeye. He had an import payment of $500,000 ten days later which he wanted to hedge using multiple forward contracts.
17 Aug 2020 07:31 PM
A textile-manufacturing company based out of Tamil Nadu has a large scale domestic business and recently decided to enter the international market. Belonging to a small town and new to foreign currency exposure, they had little awareness of Forex. Th