What does experience in Treasury get you?

10-06-2020 | Niki van Zanten

In the wonderful world of Treasury there is an easy and digestible answer for most things, but to cover the full context requires general elaboration. In other words, there are always main points but fine-tuning is equally important and the devil is in the details.

Keeping this in mind, let’s get right into attempting to answer the headline question of this blog and unravel what experience can mean for you in financial risk management with the following points

  • The answer before the analysis
  • The right analysis and additional validation
  • Speed when needed and a reserved approach 
  • An actual opinion
  • Leadership in crisis
  • Holistic approach to Finance and ability to see what’s really going on

The answer before the analysis

At school you have the smart kids who have the answer for tough questions (lets say for conversation sake a math equation which looks like this 3(1-2x)=-9, where question is what x is*) and get there by taking the necessary steps** to come to the correct answer. This is what you are taught and it leads to the desired result. Then, there is a second group who shout out the right answer immediately but skipped all the steps involved. The teacher will disapprove of this behavior as it’s not how you are taught to handle a mathematical problem. Also not all kids can be taught to handle problems this way. If experience were to be molded into these group of kids, it would perhaps be one who can answer the question immediately and then explain this steps in retrospect. In financial markets this combination is very valuable as going for the process can be cumbersome and hard to explain, unless you see what will happen at the beginning.

The right analysis and the right questions

Imagine you walk into a wine shop and ask for a bottle of wine to combine with a mouth watering turbot with lobster Bearnaise sauce. The wine shop owner recommends a Montrachet**, asking no further question. You ask him, why this wine? He answers the following; because it is a thick buttery wine thus perfectly combining with the richness of Bearnaise. Also this happens to be an excellent year from an equally exceptional producer. You end up buying the bottle to return home and taste a thirteen in a dozen overpriced bottle of wine which does reasonable well with the food but has no element of surprise or the fascination one might expect.

A few question from the wine shop owner like, what kind of wine do you appreciate a lot and what do you like about it or how much is your budget would help you on the way. The best question from your side is potential, did you ever try it? If it turns out he didn’t try it and is still trying to sell it to you he has a close resemblance to a very typical sales person in the financial sector. In other words, experience enables people to ask the right question as well as create a value and advice instead of value add for the selling party only.

Speed when needed or a reserved approach

Typically, it is assumed that decision making in financial markets and Risk management requires speed. In most cases, this is correct, providing you understand of the exposure for which your are hedging as well as the derivative you are using. Put in a simple example, when hedging a 5 year INR loan, experience will tell you to do some extra due diligence on the accuracy of the underlying exposure for the simple reason that the consequences can be significant if things go wrong. Immediately, you will also realize a 5 year tenor on INR is either not liquid or the credit component is priced in at a hefty charge replacing your FX risk with an interest risk on the roll over. If you do not execute with speed, you could be exposed to the spot risk; if you execute to fast, you might hedge something not required or with a derivative which doesn’t do the job as intended. A seasoned advisor will be the best of both worlds.

An actual opinion

Experience creates a backbone as well as a level of comfort to believe what you are saying. Consequently, this boils down to the question; Why is someone trying to sell something to me? Because you need it or because they need you to make their PL? This goes into the discussion on whether an advisor has an intrinsic or extrinsic motivation. In my view, experience is not a guarantee on where motivation comes from, but it had a lot more time to positively develop. You will hear what you are better of hearing than what you want to hear. On top of that, the advise will be more holistic as it takes a while to get all the bits and pieces of treasury together, let alone how it fits across departments in a company.

Leadership in crisis 

Argentina 2018. Hefty devaluation on the currency as well as very steep and volatile interest rates combined with liquidity issues, not to forget the social and economic disaster hitting many citizens. Situations like this, attract senior management attention like Winnie the Pooh spotting a jar of honey. One might be inclined to leave the ”when to hedge or not” decision to senior management or have endless meetings discussing business mitigation. Each crisis has different triggers as well as solutions. A seasoned crisis manager does add direct value in not only identifying root cause of what’s going on, whether financial instruments actually provide relief or are a black hole of money and in putting together the right and moreover realistic guidance for the business. I am aware of the fact that people do not like hearing bad news, but not listening to it usually brings problems back on steroids. 

Holistic approach

This is a tough one. Most people will agree, the big picture is the best one to follow, but its very common across corporates to religiously hedge PL exposures. Even in cases where there are conflicts, like the cash flow at company level being different sign than the PL FX exposure, often a bogus hedge is implemented. A holistic approach and good target setting, helps you pick the strategy with the overall best results and experience.

Conclusion

These are just a few considerations on why experience can provide added value in (FX) risk management beyond the well know assumption that it provides a way to do more in less time and is a great way to also transfer knowledge down to the younger workforce.

Hope this gives some food for thought and many fruitful discussions.

 

* multiply by 3 giving 3-6X=—9 and then deducting 3 on each side reducing equation to -6X=-12 revealing the answer.

** Montrachet is one of the words most sought after white wines. Also happy to discuss wine but that’s a different beast and business proposition.

 

Niki van Zanten

FX specialist

 

Live Demo: Ready for fraud prevention? – TIS shows you how!

| 29-05-2020 | TIS |

 

“Due to unforeseen circumstances this live demo session had to be cancelled. We will inform you once registration for the next session is open”.

 

Live Demo: Ready for fraud prevention? – TIS shows you how!

Friday June 5, 2020 from 2.00 pm to 2.30 pm CEST | 30-minute demo |

See different fraud scenarios in the TIS fraud case study and learn how TIS can help you preventing such cases. They will present different TIS functionalities and will take your high level questions at the end of the session.

  • Free of charge and no further obligations
  • No need for any demo account setup on your system
  • They will show directly how it works
  • On every Friday at 14:00 CET

Date, time and registration

Date: 5 June, 2020

Start: 2:00-2:30 PM CEST

 

 

 

When Should I Make a Money Transfer?

14-05-2020 | treasuryXL | XE |

We’ve previously gone over why you should choose money transfer over other methods of sending money, and we’ve discussed how to start your transfer. But one question we haven’t answered is, “When should I make a money transfer?”

Everyone’s circumstances are different, and whether it’s the right time to make a money transfer will depend on you and your needs. But what we can share with you are some of the circumstances in which money transfer is the safest, fastest, and most convenient option for sending money internationally.

Sending Money to Loved Ones at Home (or Abroad)

Whether you’ve moved abroad for school or work or your loved ones have relocated to another country, there could come a time when you’ll want to send money to one another (particularly if you’re supporting your family or you have a dependent abroad). You could take the low-tech route and send money through snail mail, but not only will you have to wait quite some time for it to be delivered, there’s also the potential of it being lost or tampered with in transit.

For these types of situations, money transfer is ideal because you can trust that the money will reach your recipient quickly, and be completely secure during the trip.

Putting Money in Your Own Account in Another Country

Yes, you absolutely can transfer to yourself! If you frequently travel between your new home country and your old one, you probably still have a bank account back home. If you want to keep a sum of money in that account and continue to build your savings, you can transfer directly to your own account. You can build up your savings from overseas, and you won’t be privy to the potentially unfavorable exchange rates you might get if you waited to exchange through your local bank.

If you’re looking to maximize the amount of money you can put in your account, you could set up a Rate Alert to let you know the best time to transfer. No need to constantly check the markets—XE can do that for you.

Making International Payments

You might be making payments to another country. You could be an employer paying employees located overseas, you could be making investments, or you could be making payments for educational fees, medical bills, mortgages, or pensions. Regardless of why you need to be making the payments, using an online money transfer provider to make your payments will ensure that your payments always arrive safe and sound by their deadline.

Additionally, if you’re in a situation where you need to make these international payments on a regular basis (for paychecks or mortgage payments, for example), you can set up a recurring series of payments through Regular Payments Abroad. For just a one-time setup, you can rest assured knowing that your payments are queued up and ready to go.

Exchanging Currency

Think about the last time you traveled to another country. Did you have their currency on hand? It’s more likely that you needed to get a supply for your trip. Exchanging money at your local bank, at an airport kiosk, or at a bank or ATM at your destination are all usable methods, but they’re not the best for one reason: rates.

Banks and other currency exchange services set their own exchange rates. It’s great for them, but it might not be as great for you. The rate will favor the institution, and you might not get as much bang for your buck when you exchange.

If you choose to get your currency ahead of time with an online money transfer, however, you can trust that you’re getting the fair, honest mid-market rate. What you see is what you get: no hidden service fees anywhere.

In short…

If you need to take the money you have and exchange it to another currency, an international money transfer is the best option for several reasons:

  • You can trust that your money will arrive at its destination safe and sound, with your information completely secure;
  • Your money will arrive at its destination quickly, within a few business days (but often sooner), and you’ll know exactly when it will arrive so you can plan for any payment deadlines;
  • It’s easy to do online from anywhere, and can be initiated 24 hours a day, 7 days a week.

Get in touch with XE.com

About XE.com

XE can help safeguard your profit margins and improve cashflow through quantifying the FX risk you face and implementing unique strategies to mitigate it. XE Business Solutions provides a comprehensive range of currency services and products to help businesses access competitive rates with greater control.

Deciding when to make an international payment and at what rate can be critical. XE Business Solutions work with businesses to protect bottom-line from exchange rate fluctuations, while the currency experts and risk management specialists act as eyes and ears in the market to protect your profits from the world’s volatile currency markets.

Your company money is safe with XE, their NASDAQ listed parent company, Euronet Worldwide Inc., has a multibillion-dollar market capitalization, and an investment grade credit rating. With offices in the UK, Canada, Europe, APAC and North America they have a truly global coverage.

Are you curious to know more about XE?
Maurits Houthoff, senior business development manager at XE.com, is always in for a cup of coffee, mail or call to provide you detailed information.

 

 

Visit XE.com

Visit XE partner page

 

 

 

 

Source

DELOITTE & KYRIBA WEBINAR | Today’s Payments Landscape: Reducing Costs & Fraud, Increasing Productivity

| 11-05-2020 | treasuryXL | Kyriba |

Register today!

When? Thursday, May 14, 2020

Start: 3.00 pm – 3.45 pm CET

Duration: 45 minutes

From CFOs to controllers to treasurers, financial leaders are constantly looking for ways to improve their payment processes as inefficient workflows can inhibit supply chains, cash flow, and profitability, not to mention increase fraud risk.

Deloitte and Kyriba have joined to discuss the current payments landscape in the Netherlands, and how technologies and centralised and standardised payment processes can dramatically increase productivity, lower costs and enhance fraud prevention.

In this 45-minute webinar, we will discuss:

  • Deloitte Treasury Advisory Services.
  • Key drivers for Payment Projects & Challenges for Treasurers.
  • The payment landscape today.
  • Challenging the Status Quo.
  • Panel Q & A

Submit on the registration page and safe your place.

 

About Kyriba

Kyriba empowers CFOs and their teams to transform how they activate liquidity as a dynamic, real-time vehicle for growth and value creation, while also protecting against financial risk. Kyriba’s pioneering Active Liquidity Network connects internal applications for treasury, risk, payments and working capital, with vital external sources such as banks, ERPs, trading platforms, and market data providers. Based on a secure, highly scalable SaaS platform that leverages artificial and business intelligence, Kyriba enables thousands of companies worldwide to maximize growth opportunities, protect against loss from fraud and financial risk, and reduce costs through advanced automation. Kyriba is headquartered in San Diego, with offices in New York, Paris, London, Frankfurt, Tokyo, Dubai, Singapore, Shanghai and other major locations. For more information, visit www.kyriba.com.

Send to Receive: Money Transfer Timings Explained

07-05-2020 | treasuryXL | XE |

One of the most common questions XE receives is, “How long does a money transfer take?” As much as XE wish they could immediately come back with a definitive answer, there’s no one-size-fits-all answer for the length of time between you hitting “Confirm transaction now” and your money transfer arriving at its destination.

In general, your transfer will be completed within 1-4 business days. The reason for this range is because no two transfers are alike, and the details of your transfer—such as how you’re paying, where you’re sending your money, and the currencies you want to exchange—can all impact the length of your transfer.

Who is Transferring

XE requires you to provide additional documentation before you can make a money transfer. If they need this information from you, don’t worry: they will reach out to you by email to let you know what they need from you.

If you get this email: all you need to do is log into your account, click “Upload Documents”, and upload a copy of your passport, driver’s license, or national ID.

 

It should only take a few minutes, and we’ll let you know as soon as you’re good to go.

Where You’re Transferring

Where you’re sending your money could also have an impact. You won’t need to account for the physical distance your money is traveling (money transfer is a transfer of information), but there’s no guaranteeing how quickly your recipient’s bank can process the transfer, whether your transfer will need to travel through an additional intermediary institution, or what kind of payment method your destination might require. All of these could affect how long it takes to complete your transfer.

When You’re Transferring

You can initiate a money transfer online or in the app 24/7, 365 days a year. However, because money transfers typically run through banks and other financial institutions, they will be privy to these institutions’ working hours. So if you initiate your transfer late at night or on a bank holiday, you might see a small delay.

And it’s not just the banks: check the calendar for your destination as well. National holidays can affect your transfers in addition to bank limitations.

How You’re Paying For Your Transfer

There are three ways you can provide the money for your money transfer: credit or debit card, wire transfer, or ACH payment. The time to receive these payments will vary: both card payments and wire transfers are quick, and typically get your money to use within 24 hours. ACH payments can take a little longer to settle due to the number of parties involved in the payment.

What’s important to remember is that your payment and transfer date will not be kept secret. When you initiate a transfer, we’ll let you know the soonest possible date we can send your transfer.

Here’s what you’d see if you attempted to initiate a money transfer on April 29, at about 5:00 in the evening:

ACH Direct Debit

Wire Transfer

Credit or Debit Card Payment

Even after you’ve confirmed your transfer, XE will still be in touch. They will let you know by email when your transfer has been sent as well as when it’s arrived with its recipient. No matter what, when, where, and how you’re making your money transfer, XE provides you with the best simple, secure, and smooth experience.

Get in touch with XE.com

About XE.com

XE can help safeguard your profit margins and improve cashflow through quantifying the FX risk you face and implementing unique strategies to mitigate it. XE Business Solutions provides a comprehensive range of currency services and products to help businesses access competitive rates with greater control.

Deciding when to make an international payment and at what rate can be critical. XE Business Solutions work with businesses to protect bottom-line from exchange rate fluctuations, while the currency experts and risk management specialists act as eyes and ears in the market to protect your profits from the world’s volatile currency markets.

Your company money is safe with XE, their NASDAQ listed parent company, Euronet Worldwide Inc., has a multibillion-dollar market capitalization, and an investment grade credit rating. With offices in the UK, Canada, Europe, APAC and North America they have a truly global coverage.

Are you curious to know more about XE?
Maurits Houthoff, senior business development manager at XE.com, is always in for a cup of coffee, mail or call to provide you detailed information.

 

 

Visit XE.com

Visit XE partner page

 

 

 

 

Source

Types of Money Transfer: All About Market Orders

01-05-2020 | treasuryXL | XE |

Last week, we explored the wonderful world of forward contracts. And for those of you who wanted to take advantage of a potentially favorable current exchange rate but didn’t need to make a money transfer right away, forward contracts could have been the answer to your transfer troubles.

But what happens if you want to make a future transfer, and the rates aren’t in your favor? Are you left with no option but to just sit tight and hope that the markets eventually move towards the rate that you want?

Don’t worry, that’s not your only option. Instead, you can set up a market order that will allow you to target your ideal rate.

What is a market order?

Remember how we described forward contracts as the “buy now, pay later” transfer option? Market orders would be the “buy now, transfer later” option.

When you make a market order, you can specify your target rate at which you’d like to exchange your currencies. The current rate doesn’t matter: the markets are constantly moving, and you’ll never know when your desired rate will be live.

After you’ve placed your market order and set your target rate, your work is done, and now it’s up to the markets. Once your rate is live, your money transfer will send, allowing you to transfer currency at your ideal rate.

What’s the difference between a market order and a rate alert?

If you’ve set up a rate alert before, you might think that this sounds a little familiar. And it’s true: both rate alerts and market orders are tools that can help you improve the efficacy of your future money transfers. The difference is all in their names.

  • A rate alert is an alert letting you know that it could be time for a transfer. It informs you that the rates are in your favor, but it’s up to you whether you want to make a transfer at this time. If you regularly make transfers (for purposes like sending money to an account in another country or loved ones abroad), rate alerts will let you know when the best time to do so is.
  • A market order places an order for a future transfer. You’ll enter your currencies, amount to transfer, and desired exchange rate, and the transfer will initiate once the rate is live.

When would I want a market order?

Depending on the currencies you want to transfer and what’s going on in the world at the time, your currencies could be subject to quite a bit of volatility. If you’re contending with frequent market motion, setting up a market order can help you to ensure that you’ll be able to make your transfer at the best possible rate, whenever that may be.

Market orders are also a great option for transfers that aren’t time-sensitive. Some transfers (such as bills or educational payments) need to be made by a certain date, but if your transfer doesn’t come with its own hard deadline, you can take advantage of market orders to make the most of your money in your transfer.

How do I set up a market order?

Ready to set up a market order? It’s no more complicated than sending any other money transfer. If you don’t have an account, take just a few minutes and sign up for your free account first. If you’re already registered, visit the Money Transfers page to learn more about how you can get started.

 

Get in touch with XE.com

About XE.com

XE can help safeguard your profit margins and improve cashflow through quantifying the FX risk you face and implementing unique strategies to mitigate it. XE Business Solutions provides a comprehensive range of currency services and products to help businesses access competitive rates with greater control.

Deciding when to make an international payment and at what rate can be critical. XE Business Solutions work with businesses to protect bottom-line from exchange rate fluctuations, while the currency experts and risk management specialists act as eyes and ears in the market to protect your profits from the world’s volatile currency markets.

Your company money is safe with XE, their NASDAQ listed parent company, Euronet Worldwide Inc., has a multibillion-dollar market capitalization, and an investment grade credit rating. With offices in the UK, Canada, Europe, APAC and North America they have a truly global coverage.

Are you curious to know more about XE?
Maurits Houthoff, senior business development manager at XE.com, is always in for a cup of coffee, mail or call to provide you detailed information.

 

 

Visit XE.com

Visit XE partner page

 

 

 

 

Source

The ultimate battle between Letter of Credit and Credit Insurance

| 28-04-2020 | Ger van Rosmalen | treasuryXL

For decades, there seems to have been a debate between using Letters of Credit (L/C) and credit insurance. Both methods offer their advantages and disadvantages. Last week, I read an article on how working with credit insurance is so much better than working with Letters of Credit, highlighting that L/Cs are labour intensive, have bad financial implications, and global trade generally prefers credit insurance. Now that some have called credit insurance the better alternative, there is further discussion about the usefulness of Letters of Credit, which raises many questions. In this blog, I highlight the contextual benefits of Letters of Credit and my opinion.

This blog is available in English and Dutch. See Dutch version below.

Scenario

Is credit insurance the fully comprehensive solution for the customer? What if the exporter has a nice deal in the so-called “emerging markets” where the credit insurance only covers 80% or no coverage at all and the importer does not want to pay because of a commercial dispute? Can the exporter afford to take a 20% deductible (residual) risk?

Benefits of Letter of Credit

If the credit insurer does not cover at all, a Letter of Credit is a very good alternative. If the transaction has a delayed payment of, for example, 180 days, it is not certain whether the exporter can wait that long for the money. Banks are no longer waiting for you at the door with a bag of money. Lending is scarce. With a confirmed L/C you don’t have to wait until the end of the payment term, but the bank can make money available when L/C compliant documents are provided. We call this “discounting without recourse”.

Customer interest

Discover the best solution for the customer and the transaction. Often you can accommodate a large part with credit insurance, but certainly not everything! If your sales area is Europe, you may still be able to avoid using L/C’s, but if you export all over the world, you cannot avoid using Letters of Credit.

Are L/Cs really that laborious and difficult?
I think you can influence that yourself. With sufficient knowledge in house, it already means that you can often sit in the director’s chair with L/C transactions. I have seen many L/C ‘s go through my hands and then I also see if you take exporters into the L/C world they find it interesting and more importantly, they will recognize the value of an L/C. The exporter feels himself with the newly acquired information comfortable to start using Letters of Credit.

Letters of Credit vs Credit Insurance

The battle between Letter of Credits and Credit Insurance has to be buried because both methods have pros and cons. Find a combination between the two that suits the needs of the customer and you will realize that both methods actually complement and reinforce each other.

 

in Dutch

De ultieme strijd tussen Letters of Credit en kredietverzekering

Al tientallen jaren lijkt er een debat te zijn geweest tussen het gebruik van Letters of Credit (L / C) en kredietverzekeringen. Beide methoden bieden hun voor- en nadelen. Vorige week las ik een artikel over hoe het werken met kredietverzekeringen zoveel beter is dan werken met Letters of Credit, waarbij er werd benadrukt dat L/C’s arbeidsintensief zijn, slechte financiële gevolgen hebben en dat de wereldhandel in het algemeen de voorkeur geeft aan kredietverzekeringen. Nu Sommigen kredietverzekeringen het betere alternatief noemen, wordt er verder gediscussieerd over het nut van Letter of Credit, waarbij veel vragen naar boven komen. In deze blog belicht ik de contextuele voordelen van Letter of Credit en mijn mening.

Scenario

Is een kredietverzekering de allesomvattende oplossing voor de klant? Wat als die exporteur een mooie deal heeft in de zogenaamde “emerging markets” waar de kredietverzekering slechts 80% of helemaal niet dekt en de importeur niet wil betalen vanwege een commercieel geschil? Kan de exporteur het zich veroorloven om een ​​aftrekbaar (rest) risico van 20% te nemen?

Voordelen van Letter of Credit

Als de kredietverzekeraar helemaal niet dekt, is een Letter of Credit een goed alternatief. Als de transactie een vertraagde betaling heeft van bijvoorbeeld 180 dagen is het niet zeker of de exporteur zo lang kan wachten op het geld. Banken wachten niet langer op je voor de deur met een zak geld. Kredietverlening is schaars. Met een bevestigde L/C hoeft u niet te wachten tot het einde van de looptijd, maar de bank kan geld beschikbaar stellen wanneer er L/C-conforme documenten aangeboden worden. We noemen dit ‘discounting without recourse’.

Klantbelang

Ontdek de beste oplossing voor de klant en de transactie. Vaak kunt u met een kredietverzekering een groot deel onderbrengen, maar zeker niet alles! Als uw verkoopgebied Europa is, kunt u misschien nog vermijden om L/C’s te gebruiken, maar als u over de hele wereld exporteert, kunt u het gebruik van Letters of Credit niet vermijden.

Zijn L/C’s echt zo bewerkelijk en moeilijk?
Ik denk dat je dat zelf kunt beïnvloeden. Met voldoende kennis in huis betekent het al dat je bij L/C transacties vaak op de regisseursstoel kunt zitten. Zelf heb ik veel L/C’s door mijn handen zien gaan en dan zie ik ook als je exporteurs meeneemt naar de L/C-wereld ze het interessant gaan vinden en nog belangrijker, ze gaan de waarde inzien van een L/C. De exporteur voelt zich met de opgedane kennis comfortabel genoeg om ermee aan de slag te gaan.

Letters of Credit vs Credit Insurance

De strijdbijl tussen Letter of Credit en Credit Insurance moet worden begraven, omdat beide methoden voor- en nadelen vertonen. Zoek een combinatie tussen beide die past bij de behoefte van de klant en u zult zich realiseren dat beide methoden elkaar daadwerkelijk aanvullen en versterken.

 

 

Ger van Rosmalen

Trade Finance Specialist

 

 

Money Transfer Spotlight: What You Should Know About Forward Contracts

23-04-2020 | treasuryXL | XE |

XE said it before: not all money transfers are created equal. Depending on…

  • How much money you want to transfer,
  • What currencies you want to exchange,
  • When you want to make your transfer, and
  • Whether you want to take your time to get the best possible rate

…the type of transfer that’s best for you could vary.

When you just want to make just one quick transfer on the spot, without any additional considerations or extra hassle, a simple spot transfer will make the process quick and simple. If you know you’re going to be making multiple transfers on a consistent basis, Regular Payments will ensure that you can make all of your payments, without having to worry about entering the same information ad nauseam.

But let’s say that you know you want to make a money transfer, you know how much you want to transfer, and the rates are good, but you’re not quite ready to send it out. In that case, you’ll probably want a forward contract for your international money transfer.

What is a forward contract?

In a forward contract, you’re making an agreement to transfer:

  • A predetermined amount of a certain currency
  • To another predetermined currency
  • At a predetermined date
  • At a locked in currency exchange rate.

In short? You let us know what you’re exchanging, how much you want to transfer, and when you want to make the transfer, and your transfer will be sent on that date. So if the rates are in your favor but you aren’t planning on making a payment or purchase just yet, you can still take advantage of the favorable rate without having to make your full transfer.

We like to think of forward contracts as the buy now, pay later option. You’ll pay a small deposit now, but you won’t make the bulk of your payment until your set transfer date.

When would a forward contract be the right move for me?

Forward contracts are a great option if you’re worried about potential fluctuations in your currency pairs. Sure, you could just wait until you’re ready to make your payment or purchase to make your transfer, but you can’t guarantee that you’ll like your rate when the time comes.

Are you planning on making any larger purchases, particularly property or investments? You can ensure you’ll get the most for your money if you lock in your good rate now, even if you won’t be making your transfer for months.

How do I set up a forward contract?

Setting up a forward contract is no more complicated than any other money transfer. Ready to get started? Visit our Money Transfer page to learn more about our options and how we can help you initiate your transfer.

 

Get in touch with XE.com

About XE.com

XE can help safeguard your profit margins and improve cashflow through quantifying the FX risk you face and implementing unique strategies to mitigate it. XE Business Solutions provides a comprehensive range of currency services and products to help businesses access competitive rates with greater control.

Deciding when to make an international payment and at what rate can be critical. XE Business Solutions work with businesses to protect bottom-line from exchange rate fluctuations, while the currency experts and risk management specialists act as eyes and ears in the market to protect your profits from the world’s volatile currency markets.

Your company money is safe with XE, their NASDAQ listed parent company, Euronet Worldwide Inc., has a multibillion-dollar market capitalization, and an investment grade credit rating. With offices in the UK, Canada, Europe, APAC and North America they have a truly global coverage.

Are you curious to know more about XE?
Maurits Houthoff, senior business development manager at XE.com, is always in for a cup of coffee, mail or call to provide you detailed information.

 

 

Visit XE.com

Visit XE partner page

 

 

 

 

Source

treasuryXL announces partnership with Kyriba to strengthen dissemination of the latest trends about treasury

| 22-4-2020 | treasuryXL | Kyriba |

VENLO, The Netherlands, April 22, 2020 – treasuryXL, the community platform for everyone who is active in the world of treasury, and Kyriba in the Netherlands, the global leader in cloud treasury and finance solutions today announced the signature of a premium partnership.

The partnership aims at offering a continuous flow of treasury content, making treasury knowledge available. This partnership includes:

  • collaboration on messaging, content production, and visibility
  • mutual distribution on select items of interest
  • collaboration on larger themes: event promotion, speaking and experts contribution, publications

Treasury management is currently experiencing a revolution under the effect of digital transformation. With this partnership, treasuryXL and Kyriba are striving to make sure that treasurers are always up to date with the latest news and events in their field.

According to Kendra Keydeniers, treasuryXL “We are happy to welcome Kyriba in our community. Kyriba is recognised by leading analyst firms, treasury and finance trades for its innovation and its leadership in cloud finance solutions. Kyriba will have a prominent role in the Treasury Topic environment with coverage in Cash Management, Risk Management, Treasury Software, Payments & Banking, Fraud & Cyber security and Working Capital Management which is a considerable contribution to our ecosystem.”

“With an increasing focus on digital transformation, financial leaders must be empowered with insights into all the latest treasury trends. They need rapid access to on-the-pulse information around the latest industry news, plus new services and products to support their initiatives for innovation and competitiveness. With this partnership, treasuryXL, Kyriba has access to a well -established communications forum and a wide treasury ecosystem.” says Luuk Linssen at Kyriba.

About treasuryXL

treasuryXL started in 2016 as a community platform for everyone who is active in the world of treasury. Their extensive and highly qualified network consists out of experienced and aspiring treasurers. treasuryXL keeps their network updated with daily news, events and the latest treasury vacancies.

treasuryXL brings the treasury function to a higher level, both for the inner circle: corporate treasurers, bankers & consultants, as well as others that might benefit: CFO’s, business owners, other people from the CFO Team and educators.

treasuryXL offers:

  • professionals the chance to publish their expertise, opinions, success stories, distribute these and stimulate dialogue.
  • a labour market platform by creating an overview of vacancies, events and treasury education.
  • a variety of consultancy services in collaboration with qualified treasurers.
  • a broad network of highly valued partners and experts.

About Kyriba

Kyriba empowers CFOs and their teams to transform how they activate liquidity as a dynamic, real-time vehicle for growth and value creation, while also protecting against financial risk. Kyriba’s pioneering Active Liquidity Network connects internal applications for treasury, risk, payments and working capital, with vital external sources such as banks, ERPs, trading platforms, and market data providers. Based on a secure, highly scalable SaaS platform that leverages artificial and business intelligence, Kyriba enables thousands of companies worldwide to maximize growth opportunities, protect against loss from fraud and financial risk, and reduce costs through advanced automation. Kyriba is headquartered in San Diego, with offices in New York, Paris, London, Frankfurt, Tokyo, Dubai, Singapore, Shanghai and other major locations. For more information, visit www.kyriba.com.

How to simplify Procurement and Finance in the Supply Chain

| 21-04-2020 | Wim Kok | treasuryXL

Accelerated by the Corona pandemic, an unforeseen global crisis affecting us all, digitalisation, transparency, efficiency and real time settlement has moved dramatically up north on the priority scale of all global industries. At least it makes an important move to rethink sustainable business models in the post Corona era.

Secured (cyber proof) Platform connectivity bolstering strategic supply chains will become a very important aspect in the future survival of trading companies globally.

More and more initiatives are seen to phase out the “old school” handling of paper-based settlement. Rain forest of papers are being used to settle payment out of export and import contracts. Its cumbersome processes to settle payments through bank using old payment methodologies like Bills of Exchange, Cash Against Documents and Documentary Letters of Credit. Do not misunderstand my objective, nowadays contract settlements are strongly embedded in society supported by different legislation countries by country. This is also the reason why things are moving so slowly. Institutions like ICC, Swift, Customs & Harbour authorities (to name few) are constantly trying to move the needle in digitising processes. The reality is that the transformation goes to slowly. Maybe when COVID19 is behind us there will be an acceleration after reconsidering existing business models of supply chains dependent from documentary evidence.

In this 15 trillion USD ($) global trade market there is enough space next to the big banks and big corporates, who started to explore already after the 2008 crisis using agile inhouse innovation labs.

Initiatives like Komgo and R3 syndicates already looking at blockchain technology, however still geared toward the larger (commodity) trading community. It is interesting to see that the big Agri trading companies recently started a new initiative Covantis.

After PSD2 introducing Open banking a lot of financial FinTech’s are entering the market not having the burden of an absolute (outdated) big banking system. Big tech giants like google, Facebook and Amazon are looking into their enormous data bases trying to grasp their market share.

TransDocLink is developing a platform based upon the above ideas, capturing as much as possible stakeholders & features. Transdoclink already can make use of the TDeal concept on its platform. Creating in a supplier/buyer relationship full transparency, efficiency and trust in their contracted supply chain. A dashboard gives visibility around the whereabouts of the goods and money (triggered movements are settled through a dedicated wallet). TransDocLink aims to serve the SME market in an open (independent) platform environment.

In 2016 TransDocLink already recognised that the Letter of Credit (and its very paper heavy documentary settlement) is a “dinosaur” in the expensive settlement of payments in the banking industry. The aim was to digitise these processes and offer an alternative on a platform-based initiative. Buyer and Seller create on the platform a trusted lane (supply chain) by matching contracts. The settlement of agreed terms is being executed through an independent trust account instead of the alternative using an expensive settlement via Letter of Credit. The original concept was built around a straight through processing payment engine (exempted by the Dutch Central bank) and further enhancements are being made (escrow-TDeal , working capital, asset based & trade finance modules) to keep up with the quick changing landscape in the FinTech industry.

Curious what TransDocLink can do for your business? Visit transdoclink.com and/or contact me directly for some advice.

 

Wim Kok

International Business Consultant
Trade Finance Specialist