Advisory team of Myforexeye did their research and found that
The client has two options:
When compared, the cost of funding from a Foreign Currency Loan was 32 lacs lower than that of a term loan.
There was an additional concern on this - Payment for the loan had to be made in dollars.
Fearing the exchange rate risk, the client wanted to hedge all of the interest payments and principal amount too, the annualized cost of which would’ve been around 4% which is too high because in 3 years’ time the rupee depreciation is around 3% (based on an “Annualized Premium and Rupee Change Comparative Analysis” by Myforexeye Research Team). This would ultimately lead to a bad risk reward ratio.
05 Mar 2021 03:06 PM
Myforexeye met an exporter when the USDINR spot was at ?72.40.The forward premium for April was 70 paise.
25 Feb 2021 06:10 PM
Our existing client, a garment exporter had hedged his receivables and sold EURINR forward @85.60 for Dec 2020 but part of their order got cancelled. They were able to cancel the balance contract only on maturity @89.90, booking a loss of INR 4.3 per
19 Feb 2021 12:12 PM
A Maharashtra based agro products exporter was taking working capital loan in foreign currency at 4% (LIBOR+200 to 250 bps). He wasn’t aware of PCINR/RPC, a packing credit loan available to Indian exporters.
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.