A cloth exporter based out of Tirupur booked around $100,000 of export forwards per month. The client’s bank margin was fixed at 10 paise. The bank had been quoting a cash spot rate of 10 paise above the margin. The client had recently signed our “FX on Call” service and this was the first transaction to be covered by Myforexeye for this client.
MYFOREXEYE VALUE ADDITION:
In the FX on Call service, the dealers of Myforexeye do live negotiation with the Bank on a conference call, which includes the client too. The dealers negotiate with the bank to provide the best rate to the client.
In this case, the Relationship Manager (RM) of the Bank quoted a Cash rate of 74.46. He also confirmed that the bank margin is 10 paise. Myforexeye dealers found the actual cash spot rate at that time to be 74.56 as per the current market spot rate of 74.68. After a good session of negotiations, the deal was finally closed at a net rate of 74.54 with a 10 paise margin. The client was satisfied with our service as with the intervention of Myforexeye, the forex rates that the client was being charged were successfully brought down. Also, the client saved 9 paise which amounts to INR 9,000 for this particular transaction.
We also took Bank Authorization by passing a Board Resolution, to be a part of the client’s organization and act as their Forex consultants. In this way, Myforexeye makes sure that every time our client gets the best rates from the bank.
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