Businesses faced unprecedented challenges in 2020 as the coronavirus crisis took hold. Global lockdowns, interrupted supply chains and inconsistent cash flow caused havoc, whilst historic levels of volatility in financial markets made it impossible to budget effectively.
The currency market experienced particular turbulence, with March 2020 witnessing some of the most significant swings in exchange rates for decades.
The GBP/EUR exchange rate fell from highs of €1.20 to lows of €1.06 – a 14 cent swing – before recovering some of its losses as the year progressed. GBP/USD also experienced extreme movement, with the pairing fluctuating between $1.32 and $1.14.
These rapid and dramatic changes in exchange rates were particularly concerning for businesses with international payments to manage – like sending funds to suppliers or converting international earnings.
Suddenly purchasing goods and services from overseas became a lot more expensive, while international earnings where worth less than they were previously. Keeping control of cash flow in such an environment was challenging to say the least.
While the situation has been calmer so far in 2021 and the light at the end of the tunnel appears to be brightening day by day, the possibility of further volatility is ever present.
At Currencies Direct we help businesses with international interests expand their reach, maximise profit and protect themselves from exposure to currency risk by giving them all the tools and insights they need to make an informed decision about their payments.
If your business makes or receives international payments using a specialist currency provider, rather than a bank, can ensure you benefit from highly competitive exchange rates and reduced transfer fees. Your business will also gain access to a range of specialist services, including:
Spot contracts – Perfect for making a one-off payment at the current exchange rate. Once you’ve secured an exchange rate your transfer will be conducted at that rate regardless of market movement.
Forward contracts – Fix the exchange rate for up to two years ahead. Your transfer will take place at the rate secured regardless of where the market moves in the meantime.
Limit orders – Set the rate you want to achieve and your transfer is triggered automatically if the market moves to that level. When you set a limit order you are committing to purchasing the currency at the pre-agreed rate.
Multi-currency wallets – Manage multiple currencies from one online account without the hassle of opening overseas bank accounts. Send and receive currency from your digital wallets and buy currency in advance.
Batch payments – Let us know what exchange rate you want to achieve and we’ll let you know by text or email as soon as the market moves to that level.
Our dedicated team will take the time to understand your business and help develop a payments strategy that’s right for you.
Follow this link to find out more or email business@currenciesdirect.com. If you make an inquiry you’ll be entered into our prize draw to win a £50 Amazon gift voucher.
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