UP Based Exporter Saves INR 9000 By Choosing Value Spot

UP Based Exporter Saves INR 9000 By Choosing Value Spot

11 Jun 2021 01:37 PM
 

Case

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.

Solution

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.

Value Addition

By following the advice of Myforexeye, the client was made aware about the value spot transactions and converted the amount accordingly.

Recommended for you...