A cloth exporter based out of Tirupur books around $100,000 of export forwards per month. The client’s bank margin was fixed at 10 paisa and the bank was overcharging a cash spot rate of 10 paisa 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.
In the FX on Call service, the dealers at Myforexeye do live negotiation with the Bank on a conference call with the client. 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 paisa.
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 which was 10 paisa higher than what the bank was quoting.
After a good session of negotiations, the deal was finally closed at a net rate of 74.54 with a 10 paisa margin.
The client was satisfied with our service as, with the intervention of Myforexeye the forex rates being charged to the client were successfully brought down. The client saved 8 paisa which amounts to INR 8,000 on this one 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 now makes sure that every time our client does a forex transaction, he gets the true live rates from the bank.
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