Forward Points Optimisation | Pricing with the forward FX rate

By Kantox

31/05/2023

A Mexican tour operator selling packages in France can choose to price in EUR using the spot or the forward rate. As EUR trades at a forward premium to MXN, the tour operator can price either with the spot or the forward exchange rate.

Forward Points

The forward exchange rate approach provides an under-reported source of competitive advantage. Pricing with the forward FX rate instead of the spot rate can help companies to  increase sales in terms of their existing assets.

Moreover, how can it improve your competitiveness and be a tool for currency managers? Find out in the free whitepaper!

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