Foreign Exchange – We don’t give an FX about anything else
If you’re a Yorkshire business thinking about exporting, or are already exporting, the chances are you’ll have to consider foreign exchange at some point.
Now, let’s make no bones about it; foreign exchange (or FX or forex, whatever you prefer) isn’t the most interesting of topics. In fact, some may say it’s decidedly dull!
FX is usually seen as a necessary evil. Business owners are too busy running their businesses to spend much time on it, even if they wanted to. Add to this the bewildering array of jargon and it’s not surprising that eyes glaze over.
The easiest option is very often to stick your head in the sand and let the bank take care of it.
The risks with Foreign Exchange options
The problem with this approach is that, in terms of its importance to an internationally-trading business, getting your FX right (or wrong) could mean the difference between a profit and a loss. Or between winning a contract and not.
Corporate and blue-chip businesses are well aware of this. They also know how to take advantage of all the currency tools and advantages available to them. They know their ‘spots’ from their ‘forwards’, their ‘G11’ from their ‘exotics’ and how to measure their margins.
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This, combined with the preferential treatment they get from the banks, could mean that they get to pay up to £2,000 less in foreign exchange costs for every £100,000 their company exchanges, compared to your business.
When small Yorkshire businesses are starting off with that kind of disadvantage it’s rather like having one arm tied behind their back.
That’s why we have produced a series of articles about FX. They will be designed to do two things:
- Bust the jargon of FX and explain it in layman’s terms
- Give some advice about how businesses can manage and reduce their FX costs.
We’ll also look at what local organisations, Government and regulators are doing to try to level the playing field for small businesses in terms of FX.
Hopefully, without boring you to death.
If your business imports or exports then you need to understand foreign exchange and how to ensure you get the right FX deal for your business – find yourself a solution that focuses on fairness and transparency of trades to give yourself the best chances.
Yorkshire Powerhouse – giving an FX about YOUR business!
Now you’ve read our article on Foreign Exchange – have you any more questions?
Here at Yorkshire Powerhouse, we’re happy to help as much as possible – is there anything else we can do to help you, do you have any further questions or can we help introduce you to an expert – please let us know:
FX, when done right, can save you £££'s. But for many small exporters, the fear of losing their money & constant jargon means sticking with the bank Read >