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Why businesses should see volatility as an opportunity to gain
Expansion in the current climate is tough, and keeping costs in check is essential, which means getting the right strategy is more important than ever.
“In June, conflicting information from officials from within the European Central Bank resulted in a 60-point fall in the euro against the USD. Why? A falling euro means products being exported to the Europe suddenly become more expensive for consumers to buy. But exports from Europe overseas become cheaper, and consequently more attractive.
If your company buys products and services from Europe, then this fall may benefit your business. Let’s say you are buying €100,000 of products or services from a European country. At that level, even a relatively small movement in exchange rates will have a big impact on your profits.
For example, on June 18, the euro was at €1.1205 but four weeks earlier, the euro was weaker at €1.1407. If you had made the transfer from pounds to euros on June 18, it would have cost you £89,245. A month prior, that same transaction would have cost you £87,665 – £1580 less.
If you were making this transaction each month, those losses would soon add up, but if rates moved in your favour, those gains would add up to a real benefit too.”
Extract from report
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Transferring money internationally can be expensive and stressful. At OFX, we know it’s not just about bank beating exchange rates - that comes as a standard. The OFX difference is about providing your business with 24/7 human support and a trusted, secure service it can rely on.