There may come a stage in the development of any business that requires it to outgrow its home country and consider the international market. Even if that’s not physically launching offices in other locations around the world and staffing it, it may be exporting or importing overseas goods.
If that’s a situation you either find you and your business in, or this kind of expansion is something you are considering, amid all the other aspects under consideration – and there will be plenty to plan for – don’t overlook the importance of currency exchange.
Trying to understand the foreign markets may seem a daunting prospect but it isn’t that tricky and it could actually prove to be priceless. By understanding the exchange rates, you could save money when making an international currency transfer – and when it comes to business transactions, this could be critical. It can really pay to know how to make the most of your money.
This free information guide, prepared by World First Foreign Exchange, is a useful introduction to the market. There are guidelines and advice here for businesses, but also, too for individuals who may find themselves in different scenarios where currency exchange is involved. By spreading awareness of the circumstances and recommending steps to take to protect your money, you’ll be prepared if the situation comes around.
The currency market is huge. Today, the foreign exchange (you will also hear it referred as the ‘FX market’ or ‘forex market’ is the largest financial market in the world, trading more than $4trn around the world: every day. A third of this is traded in London. The Forex market never sleeps – it’s open 24 hours a day, so traders are always active.
As the business world gets smaller, in an increasingly global society, money needs to be distributed to all four corners of it. And not just from a business to business consideration, either. Certain companies, who may employ workers from overseas – say, in security, construction and manufacturing – should understand the best options as their employees would benefit from advice on the most effective way of receiving salaries and then transferring to their home bank account, where it can be accessed by their family.
For employees who work away for the majority of their time – a three-year contract on a large-scale property complex development, perhaps – it’s reassuring to know their wages will not be negatively affected when transferred home.
This is particularly important if the employer is in the position of being able to pay out bonuses – larger, one-off amounts, which could vary significantly depending on the exchange rate applied.
This can be achieved by consulting a foreign exchange company, who can help to set up an automatic regular transfer so that the same amount is paid every month. If you wish, it’s possible to fix an exchange rate in advance via a forward contract so that your money is subject to the same rate, over the long term, no matter what happens in the market.