Currency Exchange Services Benefits for Exporters and Importers

We’re living in an interconnected world where transacting of business is becoming easier by the day. 

Even then, exporters and importers often fail to hit their profit margins. This is due to a lack of knowledge or fear of handling sellers and buyers in other countries using multiple currencies. How can exporters and importers benefit from currency exchange services? Let’s find out. 

Understanding Currency Exchange

Currency exchange is a trade that holds the legal right to swap one currency for another to consumers. Currency exchange of paper bills and coins (physical money) is often executed over the counter. You can access currency exchange services from businesses that provide these services online. 

For instance, they can be incorporated in services offered by a forex broker, banks, and other financial institutions. Currency exchange businesses make a profit by charging fees, modifying the exchange rate, or even both. Listed below are the benefits of currency exchange services. 

They help Exporters and Importers Eradicate Profit Loss through the use of Forward Contracts

With currency exchange services, exporters and importers can leverage forward contracts to sell and buy currency for subsequent delivery date. This eradicates the risk of the currency shifting against them and consuming their profit margin. Integrating a forward contract with your invoicing ensures that you don’t lose money as a result of exchange-rate unpredictability. 

They Ensure that Importers in the US don’t Overpay Foreign Sellers

American importers hardly use foreign currency. Instead, they send US dollars for every international transaction. By accepting US dollars, global companies take on risk seeing that they have to change US dollars to their currency. 

To avoid the risk, these international companies should raise the dollar invoice between 3 to 5%. To neutralize this, US importers should request for dual invoicing. In this case, international suppliers will have to invoice them both in their local currency and US dollars. Dual invoicing allows importers to compare the invoices against the exchange rate and decide the amount to pay. 

In many cases, sending foreign currency would be more affordable than sending dollars. Sometimes international exporters decline to send a dual invoice because they’re raised the dollar to gain profits from the exchange rate. 

If an exporter is unwilling to provide you with a dual invoice, that could indicate that you’re being overcharged. As an importer, you are entitled to receive what you request. 

They help you make Informed Decisions Regarding the Currency Needs of Your Business

Being an exporter or importer for many people means becoming the chief financial officer. Sometimes you’re also responsible for cushioning your business from financial risk. However, when it comes to international trade, getting a comprehensive perspective of the economic sector can be challenging. This is attributed to various factors, such as:

• Trade wars
• Complex political surroundings
• The economic crisis in international governments
• Natural disasters

The impact of these factors on currencies is entirely uncertain. This is why having a partner who is conversant with the currency exchange is critical. 

Currency exchange experts help exporters and importers to lay down strategies customized to meet their individual needs. It’s essential to have someone or a team that can guide you through currency exchange complexities. 

Trust Export Portal to ease your business operations. Whether you’re an exporter or importer, our efficient professionals will help you conduct hassle-free business. We are also experts in shipping procedures. We shall work together to help you create your dual invoices and other documentation with ease. 

Contact us today and enjoy free registration and cost-effective services tailored with you in mind.