Any business with transactions in a foreign currency, that involves buying and selling products or investing and borrowing overseas, has a foreign exchange risk which must be managed. TransGlobal can help you manage your foreign exchange risk through utilising the following risk services:
Forward Contracts
Forward contracts let you lock in a rate today for delivery of funds at a future date. Once a rate is secured, the currency bought or sold is fixed for the duration of the contract, thereby protecting your profits from erosion. This is a highly effective tool for managing currency risk and can be used for both payables and receivables.
You can purchase Fixed and Open Forward Contracts where the terms may be as short as three days or as long as a year. Flexible delivery dates are available so that you can take final delivery of your funds during a 1- to 30-day window or up to a 90-day window. Extensions can be provided if you need to reschedule the delivery date beyond the original contract.
Forward Contracts only require a minimal, interest-earning deposit upon locking in the exchange rate, so setting up a contract has minimal impact on your cash flow. Additionally, TransGlobal offers the ability to book low value forwards so that all sizes of businesses can take advantage of this service.
Key benefits of forward contracts
- Secures today's exchange rates for a future delivery date
- Locks in budget profit margins and price lists without worrying about currency fluctuations affecting your bottom line
- Maintain control with flexible delivery dates (up to a 90-days)
- Low contract minimums and minimal interest-earning security deposit requirements
Market Perspective
Global market volatility means access to timely information and analysis is a critical component of your international business strategy. By staying on top of market-breaking news you can lock in favourable exchange rates, manage currency risk and plan for future payment cycles.
Through The Marketplace, a market information service that is delivered either daily or weekly depending on your requirements , Transglobal's analysts track and interpret the financial and political news driving global market activity. Depending on your business interests, we will provide you with a mix of market alerts including exchange rates and in-depth analysis of the currencies you use, which is accessible online and by email.
The information contained within The Marketplace is TransGlobal's perspective of the currency markets, and provides economic news that drives the movements in currency.. Being aware of release dates for key economic data can help you control the cost of your currency exchange and The Marketplace is there to support you when making these key decisions.
Business Contingency and Disaster Recovery
Is your payment system at risk?
In the event of a problem, such as loss of office or theft, many organisations believe it is the responsibility of their financial partner to help ensure payments can be made, but responsibility actually falls upon the organisation.
TransGlobal's Contingency and Disaster Recovery Service helps you to be prepared for unexpected events. It is an online alternative to your existing payments system which can be accessed via PayFac from any Internet-enabled computer. This service is set up as part of your initial registration process and avoids the need to purchase additional software or licences.