One of the most globalised industries, food and drink heavily relies on the vast international supply chain and on trading internationally.
Whether it’s importing or exporting food and drink, the amount you and your business pay is hugely affected by changes within the foreign exchange market. Understanding these changes within the foreign exchange market, as well as its risks and opportunities, can have a critical impact on your bottom line.
How foreign exchange can affect the Romanian food and drink industry
As with everything imported and exported, the value of food and drink can differ greatly before and after currency market movements, whether the price has changed or not.
If you are receiving a payment in a currency that has recently moved upwards against the pound, then you can expect to receive less in revenue as a result of converting your funds. Moving exchange rates can ultimately affect every cross-border payment you make, whether to an overseas supplier, international overheads or staff based abroad.
In addition, exchanging your money with a high street bank could damage your bottom line further with a poor exchange rate and costly transfer fees.
How we can help your business save money
At moneycorp, every food and drink business is assigned an account manager who understands the ins and outs of your sector and will guide you through potential currency volatility to ensure you are offered a full range of foreign exchange solutions tailored to your business needs.
These include the ability to lock in a prevailing exchange rate for up to two years with a currency forward contract (this may require a deposit), as well as the option to secure a market order and target a desired rate at which to make your payment. This is ideal if you are in no rush to make the payment and wish to wait for a potential currency movement, as we will automate your payment as soon as the rate reaches your set level.
Taking into account the demands of your business, we will monitor the market for you and keep you best informed of how far your money can go with a global payments solution.