In our interconnected world, it’s more straightforward than ever to purchase, sell and exchange labor and products. Having a multi-currency account makes sense.
Despite the fact that doing business globally is no longer as complicated as it once was, Transacting cross-borders can be tricky for your business, especially when you have to deal with multiple foreign payments and international clients regularly.
Importers and exporters now and again pass up valuable chances to expand their net revenues due to fear or absence of information in regards to how to deal with buyers or sellers in different nations — particularly concerning utilizing Multiple currencies.
Explained below are how currency exchange services can benefit both importers and exporters.
- Damalion helps importers and exporters eliminate profit loss by using forward contracts.
Through Damalion currency exchange partners, both importers and exporters can use forward contracts to buy or sell currency for a future delivery date, which eliminates the risk of the currency moving against them and eating into their profit margin. By employing a forward contract in your invoicing, you have “insurance” against the possibility of losing money due to exchange-rate volatility.
- Damalion partners Offers Instant Currency Conversion no matter where you are
Enjoy access to fast, simple and seamless multi-currency conversion or all buying and selling of foreign currencies and precious metals.
The FX capability
On this field what Damalion partners can offer you is:
- Remove all transaction fees for international payments;
- Hedge = block the exchange rate for a client with forward contracts.
Here is an example:
– You can set a minimum rate for a certain horizon that you want to choose.
For example: 500.000 USD to be withdrawn between 01/01/2022 – 31/12/2022 at 0.85
– You can withdraw from this contract at any time during this period.
For example: 20,000 USD on 10/01/2022, 400,000 USD on 22/05/2022 and 80,000 USD on 25/12/2022.
– You exert less pressure on your liquidity since you only need to convert euros when you need dollars i.e on the 10/01/2022, 22/05/2022 and 25/12/2022.
– It allows you to free your margins without leaving them dependent on uncertain things like an exchange rate.
– A forward contract costs the same as spot transactions;
- A simple, transparent and flexible way of working. We take a margin on the exchange rate an this is the only ‘cost’ a client has with our partners.
- Damalion partners help U.S. Importers try not to overpay unfamiliar dealers.
Often, importers tell us they don’t use foreign currency. They rather send United States dollars overseas for every transaction. Overseas organizations that acknowledge U.S. dollars face risk challenges by accepting this money, since they need to convert U.S. dollars into their currency.
To support this gamble, these foreign organizations frequently increase the dollar receipt somewhere in the range of three to five percent or more.
To counteract this, importers ought to demand dual invoicing — having foreign providers receipt them in both U.S. dollars and their local money. With dual invoicing, importers can look at the two solicitations against the exchange rate and pursue a choice on which cash to send. (Generally it is less expensive to send foreign currency than to send dollars.)
At times foreign exporters will not send a dual receipt since they’ve increased the dollar so high that they’re presently benefitting from the exchange rate themselves. Assuming you’re working with an exporter who wonders whether or not to give a dual receipt, that is a sign you’re in all likelihood being cheated. You ought to demand they give what you’ve mentioned.
- Damalion partners provide tools that may protect your company whe currencies fluctuate.
Currencies are continuously fluctuating — going all over and strengthening or weakening against one another. Importers and exporters can exploit these changes — currency weakening when they need to sell it or strengthening when they need to buy it.
Take the Euro for instance. To purchase Euros just at $1.09, despite the fact that the cost today is $1.11, you can put in a market order with a currency exchange provider. When (and if) the market gets to that rate — whether it’s in a day, seven days, or a month — that currency will be purchased on your behalf.
Market orders permit importers and exporters to exploit currency strengthening in their favor, however they likewise safeguard themselves on the off chance that the currency weakens.Utilizing our prior illustration of dollars to Euros, to safeguard themselves against a consistently debilitating dollar, importers might purchase at $1.12 or $1.13, so on the off chance that the dollar goes to $1.20, they won’t be in a worst situation imaginable. At the cost of $1.13, they know from their business net revenue that they’ll in any case create gain on the item they’ve imported and plan to sell; however assuming it came to $1.20, their net revenue would be profoundly dissolved.
- Damalion partners Offers Attractive interest rates on foreign currencies
Earn interest on short and long-term deposits with a consolidated monthly statement and enjoy potential foreign exchange gain depending on market conditions. If interested, you may place your foreign currencies on short and long-term deposits at your home branch.
- Damalion partners are strategic partner that help you make informed decisions about your business’ currency needs.
For many, being an importer or exporter means wearing the (Chief Financial Officer) CFO hat as well and being in charge of protecting your company from financial risk. But in the world of international trade, it’s difficult to get a full picture of the economic landscape due to increasingly complicated political climates, trade wars, natural disasters, and economic crises in foreign governments. The Influence of these factors on currencies is almost entirely unpredictable. This is why it’s a huge advantage to have a partner who understands the world of exchange.
- Damalion partners are currency exchange specialists that help importers and exporters form strategies tailored to their individual needs.
It’s invaluable to have someone on your side who can guide you through the intricacies of everything from forwards, to market orders, to holding foreign currency, because the timing of when you buy or sell currency has a huge impact on your profitability.
- With Damalion partners
You can deposit foreign currency cheques payable anywhere in the world. Our wide coverage enabled with the help of a correspondent bank network will ensure that cheques are credited to the account in no time. You can also purchase Foreign Currency Drafts in USD, GBP, EURO, AUD, CAD, JPY, SGD and AED. There will not be any foreign currency margin on the same.
To open your multi-currency account, contact your Damalion expert now.
