This is the most common group of Forex users. For example, a company or entity or individual that carries out business across their home border and has not invoiced, or been invoiced in the home currency. Therefore an asset or a liability will arise in a foreign currency.
The businesses that fall into this category would be :-
Providers of services internationally
Contractors of services from offshore
The issues that need to be dealt with are :-
When risk arises
How to record and manage that risk
Portfolio management strategy
Evaluation of positions and choice of actions
Manage underlying changes
Costing if on-selling / part of product being on-sold
Cashflows caused by forex activities
Choice of currency providers and relationship
Documentation and confirmations
Control of instructions
Delivery of funds on time
Handling of queries
Funds security, internal and external
Evidence of activity / actions
Valufin’s services address all of the above treasury responsibilities and ensure that adequate procedures are in place, followed, recorded and monitored. Valufin services ensure such that risk is managed and evidence of activities is recorded.
The benefits and advantages to the organisation are:
Accurate record keeping which ensures realistic product pricing, removal of risk of unexpected accounting variances and control of risk for the whole period in question.
Rate negotiation, correct strategies, market timing results in direct savings on payments and increased revenue on inflows.
Streamlined systems and accessible information reduces administration cost and time.
Click here to download a pdf copy of information for International Traders.
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