Recent market volatility across many of the major currencies is becoming a growing concern for many South African businesses. Considering how the USD/ZAR is trading at the moment – this is exactly why businesses with regular currency payments need to start including innovative currency products into their payment processes and decision making.
The enduring problem with foreign exchange, is that exchange rates change constantly. This volatility creates uncertainty leaving businesses unsure of what to do. The time difference between placing orders and paying for goods can be up to 2-3 months. That’s a lot of risk, and a lot can happen to the exchange rates in that time.
Time can either work for you or against you. No one has a crystal ball to predict. This risk generally increases when there is a longer period of time between placing an order and settling it as there is more opportunity for the currencies to fluctuate. Currency fluctuations have a significant impact on a company and when managed properly can in fact protect a business’s profitability.
You can only squeeze the price so far…
Majority of the market worry about the price at the point of execution, where the real opportunity to improve the rate is reliant on a lot of haggling and only limited to saving you 1 or 2 cents. The other 10% of the market understand that exchange rate can move by up to 40 cents a day – this is where the real risk and opportunity exists. These customers save up 10X more on their foreign payments, consistently outperform their competitors and tend to take far less risk.
Find a payment partner you can rely on…
At FX Paymaster we’ve made it easy for businesses of all sizes to reduce their payment costs by significantly improving the way they manage currency. All our solutions are delivered first-hand by experienced FX consultants, using technology and methodology that is fast and effective.
No, We don’t have a crystal ball and understanding that in the medium to long-term, nobody can reliably predict the currency market. We use a blend of fundamental and technical analysis to form opinions and likely scenarios. We then share these views with our clients, so they understand their potential exposure every step of the way.
It doesn’t matter whether you’re buying or selling currency. Market volatility presents both risk and opportunity and it’s possible to capitalise on short term movements with the right strategy and products.
For more information on how to maximise opportunity and reduce currency risk – call our dealing room on 011 888 0125 or drop us an email on info@simplytest.co.za.
