A Tiruppur based exporter in textile industry have an annual export turnover of INR 300 Crore. They are banking with a PSU bank having exposure in Dollar and Euro. They were not cross checking the rates given by the bank from any source and were referring to online platforms to keep a watch on exchange rates, they are not aware of live inter-bank terminals.
Myforexeye Value Addition
We had a detailed meeting with the management and finance team to discuss the ongoing risk management process. As they were doing window forwards till now, we advised them to do fixed date forward to gain some extra premium. While doing an audit of their USDINR and EURINR booking we found that bank is overcharging them by 7 paisa in USDINR and in EURINR they were giving them lesser premium in dollar by 5 paisa and 8-9 pips off in euro crosses. In a Euro 5 lakh forward transaction we assisted them and managed to get the live rate for them by negotiating Euro Cross swap points and dollar premium separately for them, In total making a saving of net around 10 paisa (INR – 50,000).
Advised client to subscribe to our Product namely TPO (Transaction process outsourcing) wherein the client authorises our dealers to book Forex 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 where we provide arrangement for transacting on behalf of our clients to negotiate the best live rate against their transaction.