A cloth exporter based out of Tirupur booked around $100,000 of export forwards per month. The client’s bank margin was fixed at 10 paise. The bank had been quoting a cash spot rate of 10 paise above the margin. The client had recently signed our “FX on Call” service and this was the first transaction to be covered by Myforexeye for this client.
MYFOREXEYE VALUE ADDITION:
In the FX on Call service, the dealers of Myforexeye do live negotiation with the Bank on a conference call, which includes the client too. The dealers negotiate with the bank to provide the best rate to the client.
In this case, the Relationship Manager (RM) of the Bank quoted a Cash rate of 74.46. He also confirmed that the bank margin is 10 paise. Myforexeye dealers found the actual cash spot rate at that time to be 74.56 as per the current market spot rate of 74.68. After a good session of negotiations, the deal was finally closed at a net rate of 74.54 with a 10 paise margin. The client was satisfied with our service as with the intervention of Myforexeye, the forex rates that the client was being charged were successfully brought down. Also, the client saved 9 paise which amounts to INR 9,000 for this particular transaction.
We also took Bank Authorization by passing a Board Resolution, to be a part of the client’s organization and act as their Forex consultants. In this way, Myforexeye makes sure that every time our client gets the best rates from the bank.
21 Jul 2020 11:30 AM
A Kolkata based metal exporter regularly hedged using forwards and often sought packing credit from their bank, yet they were incurring losses. The client had already availed Myforexeye’s TPO service which ensured rate transparency but to analyze the
13 Jun 2020 03:43 PM
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 sev
05 Jun 2020 10:57 AM
A Delhi based metal importer had import payments of 3-4 million dollars scheduled every month. The client was getting extremely worried about the weakening rupee. The rupee has already depreciated 7.5% in 1.5 months. With growing uncertainties in the
16 Nov 2019 04:30 PM
Delhi based manufacturers of institutional and home furnishings, fabrics and hospital textiles exporter with market base across the country and other Asian and European nations. The client had recently started using our TPO service and had to book a
05 Oct 2019 05:30 PM
A Pune based industrial Instruments importer engaged in manufacturing of Electrical/ Instrumentation Systems. The client regularly avails import funding in foreign currency from Overseas branches of Indian Origin Banks. The client shared a transactio
21 Sep 2019 06:14 PM
A New Delhi based electronic goods importer. The working capital cycle of the client is 180 days but the Import payments terms are at sight against DP documents. The client used to utilize the Cash Credit facility with a PSU Bank. The client had appl