We are dealing more and more with offices that have no foreign currency exposure except for sending payments to a head office in another part of the world.
These can be ad-hoc payments made as and when head office requests them or on a more structured basis.
For the more structured payments, for example, a set monthly payment, a forward contract could be put in place at a time when the rate is favourable, something this simple could save hundreds or even thousands in exchange rates.
A European IT office based in France is required to send $10,000 per month to the US head office, this is a recurring payment and if the rate was favourable for buying USD the French office could potentially book a forward contract for up to 3 years, hence knowing exactly how much is being sent to the US in Euro terms every month for a specified period.
With the fluctuations in currency rates in any given year, this not only helps with budgeting but also gives peace of mind, there is no need for concern with what the markets are doing.
If your company is sending these payments or indeed receiving them we can help save you money, please feel free to contact us to discuss your requirements.