A U.P. based exporter had an inward of USD 150,000 in May 2021 to be converted to Indian Rupees. Forward premium were at its 4.5 years high in May so cash spot discount was also high around 5-6 paise.
The client approached Myforexeye and discussed the issue they were facing. We advised them to convert the inward at value spot instead of value cash, if they don't have an immediate requirement of funds. Usually cash spot discount remains around 2.5 to 3 paise but in May it was almost twice at 6 paise.
(When the amount is converted at value spot, the funds are received in two working days.)
The client saved INR 9000(0.06×150,000) by converting the inward at value spot.
By following the advice of Myforexeye, the client was made aware about the value spot transactions and converted the amount accordingly.
23 Jul 2021 01:45 PM
A Maharashtra based exporter had an inward of USD 9,198 and the bank was quoting him a net rate of 73.08 when USDINR spot rate was at 74.34.
13 Jul 2021 01:26 PM
A Pune based construction company did not have the funds to keep with bank as a collateral and open a forward limit to hedge the forex exposure.
03 Jul 2021 03:27 PM
An Ahmedabad based textile importer had an import forward booked for 22nd July at 74.59. On 2nd July, the client had to make an urgent payment of USD 49920.
27 Jun 2021 09:27 PM
A Japanese Yen importer had a business arrangement with the seller to use RBI quarterly reference rate for import bill buying. The client was hedging the import bills (JPYINR) on the basis of previous quarter's reference rates published by RBI to hed
18 Jun 2021 03:49 PM
A client had an exposure of USD 1 million receivable in seven equal tranches of USD 0.142 million each between August to February. He receives documents only one month before his receivables are due.
05 Jun 2021 12:28 PM
A fruit exporter approached Myforexeye to better optimize forex risk management. He had an exposure of $300,000 every month and was banking with a large foreign bank in India.