International Trade

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 :-

  • Importers
  • Exporters
  • 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
  • Market knowledge
  • Manage underlying changes
  • Accounting appropriately
  • Costing if on-selling / part of product being on-sold
  • Cashflows caused by forex activities
  • Hedging instruments
  • Revaluations
  • Management Information
  • Monitoring
  • Negotiating rates
  • 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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