Aug 04 2018

UP based client added value using TPO

A Ghaziabad U.P. based import and export company has an exposure of INR 45-50 crore and is banking with a private sector bank. They have monthly payments of forex but have not fixed a margin with the bank. The company has an exposure in both USD and Euro. The bank always charged 15-20 paise over and above the real-time rate.

Myforexeye Value Addition

Initially the client was apprised about forex market and bank margin was also discussed. The client has monthly 4-5 payments of about USD and EUR 30,000-40,000 each. Since the bank margin was fixed, the bank would charge close to 10 paisa as bank margin and the market price was quoted atleast 15-20 paisa above the real rate.

A USD 30,000 payment was to be made by the client and spot quoted by bank was 68.60 whereas the real-time quoted was 68.35. The bank would further levy a margin on this rate. The Myforexeye dealer along with the client spoke to bank and reduced the net price to 68.40. This rate was inclusive of bank margin. Thus net saving of 20 paisa on $30,000 made them save INR 6,000 on a single dollar deal.

We have further advised client to subscribe to Transaction Process Outsourcing (TPO) service, wherein the client authorizes our dealers to book rates against their forex transactions on behalf of the company. Our dealer transacts using live inter-bank terminals to negotiate with the bank and gets the best rate for the client. In turn, clients get complete information on their transactions including – voice recordings of Myforexeye discussion with their bank, exact time of transaction, corresponding charts etc. Complete transparency is guaranteed by sharing complete information around the transaction.