How to set up a forward contract and lock in a rate for your business

03-06-2020 | treasuryXL | XE |

A forward contract gives you and your business certainty, allowing you the peace of mind to have confidence that your international exposures are taken care of.

At Xe, we work with businesses of all sizes across many industries. We recognize that each business has its own requirements for its payments, and thus we offer a diverse suite of money transfer products and solutions in order to meet each business’s international payment needs.  Let’s say that you’ll need to make a payment in the future. Right now, the rates are in your favor, but your payment is weeks or even months away, and you’re worried that the rates could change in the coming weeks, which would make your upcoming payment much more expensive than it would be now. You can’t influence the markets, but is there anything you can do to avoid feeling the brunt of currency market volatility?

In that case, the forward contract would be the right solution for you. Let’s take a closer look at what that is and how it could help your business.

What is a forward contract? 

A forward contract is an agreement to buy or sell an asset at a specified price on a specified future date. In the context of money transfer, this is how it works:

  • You specify which currencies you’d like to exchange, and get a quote at the current exchange rate.

  • You select the date on which you’d like to send this transfer, and provide all necessary recipient and payment information.

  • On that date, the transfer will automatically trigger, and will convert and send at the previously established rate.

You could think of it as the “buy now, send later” money transfer option. You’ll do the work of setting up the transfer now, and your currency exchange will happen at the current exchange rate, but the transfer itself won’t happen until the date you’ve specified.

Why is a forward contract useful? 

A forward contract can be useful in two ways: allowing you to lock in your rate to avoid future volatility, and to ensure that your payment will be sent (and delivered) by a certain date.

Changes in currency values can dramatically impact the cost of your business money transfers. If the currency that you’re sending weakens, or the currency you’re transferring to strengthens, a simple payment could suddenly become much more costly for your business. A forward contract gives you and your business certainty, allowing you the peace of mind to have confidence that your international exposures are taken care of.

Additionally, if your payment needs to be delivered by a certain date, arranging your payment in advance can ensure that it will be sent on time. No matter how busy things get leading up to the transfer date, you can rest assured that your payment is taken care of.

How to set up a forward contract 

If you’re interested in setting up a forward contract and securing a rate for your business’s upcoming money transfer, give us a call to set that up with our team. If you don’t already have an Xe account, take a look at our guide to registering for a business account. 


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 multi billion-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

 

 

 

Payment Fraud | A 750 000 euro Financial Scam that could happen even to you

| 02-06-2021 | treasuryXL | Nomentia |

Have you read the recent news on how Bol.com deposited almost 750 000 euros into a fraudulent bank account over a year ago? Simply, they thought they were making a payment to Brabantia, a household goods manufacturer. If you are not familiar with the story, here is it in a nutshell:

At the same time, Brabantia did not receive the payment, so obviously, they took a lawsuit to the court. And that was the point when the court discovered that Bol fell for a financial scam.

It all started with a legit-looking email like usually

In November 2019, Bol received an email in poorly written Dutch. Nevertheless, the email looked legit like it has been sent from Brabantia including the company’s logo. They were asking Bol.com to transfer the outstanding payment to an account in Spain.

The Bol employees fell for the trick. No surprises there, as these emails can be very well-crafted and if you have never seen one before, you could become a victim too.

The court thought the scam email was obvious and easy to recognize 

Bol tried to get out of paying Brabantia claiming that the company’s employee fell for a business email compromise, and they were accused that they did not use two-factor authentication in the Microsoft 0365 environment. The story doesn’t tell if the email was really sent from Barbantia using a stolen username and password but hopefully, it still makes you want to protect your accounts with multi-factor authentication (MFA).

Despite this, the court ruled in the favor of Brabantia and ordered Bol to pay the outstanding payment. The reasons for it were the following:

  •  The court believed the email was clearly a phishing email due to grammar errors. Previously, all communication between the two companies happened in Dutch, while the scam email was written in mixed Dutch and English.
  • The court thought that Bol should have been suspicious about the odd request to transfer money to a Spanish bank.

How to avoid something like this happening to you? 

There are a few tips that you should always remember.

  1. Always be suspicious: Always be suspicious, especially, when you are handling large payments. If you have the slightest doubt about the legitimacy of the request, something is probably wrong.
  2. Never accept a payment alone: In this case, always ask for help! Never send out payment before at least you had a second pair of eyes looking at it. In most companies, that’s an everyday process.
  3. If you are in doubt, ask for help: Still, if there is even one person that is a tiny bit unsure, don’t process the payment. Ask for more help within your treasury or financial department, procurement, or even from your cybersecurity department. Your cybersecurity team will be able to tell with high likelihood whether the email is real or not.
  4. Use a payment hub: Payment hubs come with features that enhance the security of processing payments. Consider using the following: Workflows to manage authorization of different payment flows | Approval limits for different payment types | Templates to limit and control releasing of manual payments
  5. Strict processes to update supplier master data: Supplier master data should be correct in the ERP system. It should only be managed by procurement who has strict processes in place to validate the possible changes before updating master data. Always execute payments according to registered beneficiary bank account details.
  6. Don’t skip the CyberSecurity and phishing training: While you may think it’s easy to spot phishing emails, it’s not. Especially when we are talking about financial scams. Spear phishing is a growing business and it’s expected to grow to 1,4 billion US dollars by 2022. Scammers can work even two weeks on crafting an exceptional financial scam to lure in financial professionals to make a large payment. Good phishing training should be targeted for your expertise and prepare you through challenging exercises to spot potential scams. It’s always better to report an email to your security team and ask for their opinion than make a payment and regret it later.
  7. Care about security: Security is a bigger part of treasury operations than you would think. Make sure that you care about security. Things like using a strong password, updating the password frequently, using multi-factor authentication, or not sharing user rights matter and can do a lot.

When you care about security, you also show a good example to the rest of the team.

Trust your instinct and the learnings of this story and the security training

Always rather take longer to process the payment than pay a scammer! Creating good and strict payment processes and workflows can help with this. Also, trust your own and co-workers’ instinct if you feel like something is off.

Stay curious about financial scam news to know what the latest trends are and how hackers will try to trick you. Work closely with your security department! It’s in everyone’s best interest to avoid falling victim to a scam.

It’s not a question of whether you will receive financial scams and phishing emails, but when you will get them. Be prepared that you will be targeted and face the situation with confidence to avoid making a payment.

About Nomentia

Nomentia is a Nordic powerhouse for global cash management. We believe in a world in which businesses can make the right decisions no matter how unpredictable the times are. Our SaaS-based platform offers solutions for cash forecasting and visibility, global payments with bank connectivity, reconciliation, in-house banking, guarantees, and FX dealing. We serve 2,300+ clients in over 100 countries processing more than 200 billion euros annually. Cash is king!

 

 

Barbara Babati

Barbara is working in the marketing department at Nomentia. Previously, she worked in cybersecurity and data integration industries.

 

 

 

 

 

Why CFOs Should Foster Stronger Relationships with Banks

01-06-2021 | treasuryXL | Kyriba |

CFOs are the custodians of financial growth for enterprise business, and a key part of that role is to build and foster mutually beneficial relationships with banks and funding partners. Since banking relationships are built upon the provision of services; whether those are lines of credit, daylight overdrafts, bank account reporting, payments, foreign exchange or concentration / pooling structures, CFOs can and should maximise the value derived from partner financial institutions.

One of the first mistakes a CFO or finance professional can make is in selecting or expanding a relationship with a bank ill-equipped to handle the global nature of their business and geographic footprint.

For example, banking relationships have implications across borders as many strong financial institutions are partnered with local banks or their own local branches providing much needed local expertise. Navigating difficult tax and reporting requirements, local format and regulatory requirements or unique depository scenarios all call upon strong relationships with banks familiar with your localisation needs.

Automating your banking interactions and reporting with technology is an area of concern.

In this scenario, CFOs are not able to take advantage of the full range of banking services since lapses and gaps in technology solutions do not provide for straight-through processing of payments or the automatic posting of cash and transactional details from bank-provided daily bank statements. Banks have evolved their services to provide much more flexibility and sophistication with regards to intraday bank statements, high levels of detail within bank statements and the frequency of sharing this information up to 4 to 5 times per day. Without the right technology solution to handle cash and liquidity forecasting, CFOs are leaving value on the “proverbial table” in the form of lost opportunities to invest, grow the business, or mitigate risk. Meanwhile, the lack of finance and treasury tools and automation associated with technology solutions, keeps staff tied to daily, tactical tasks versus a focus on strategic support and projects.

How well do CFOs understand the full potential of their banking relationships?

CFOs must be involved in understanding the health of the banking relationship and managing, or at least receiving updates on banking scorecards and other metrics to ensure the bank relationship is being leveraged to its full potential. For instance, more than ever, banks often provide or are partners in enabling Supply Chain Financing or Discounting scenarios to help both sides of the financial supply chain achieve their objectives. CFOs, again, must leverage their banking relationships while coupling them to technology options such as a solution with Dynamic Discounting or Supply Chain Finance to maximise bank services.

Additionally, visibility to liquidity in near or real-time is a must-have for CFOs.

Liquidity planning is critical for CFOs in good times and in bad. Historical market drops have highlighted the importance of having real-time access to information about your total liquidity position, understanding what level of cash is flowing through all systems, and what level of liquidity can be allocated to invest in growth opportunities or simply pay employees. CFOs in many cases can partner with banks to develop a mutually beneficial relationship. At the end of the day, Treasurers provide the CFO with the assurance that assets are safeguarded and the organisation has the liquidity required to meet obligations and fund strategic decisions. This is only possible if they too have immediate visibility into their positions.

Finally, there is risk in having all of your eggs in one basket.

CFOs should have a backup plan – having your liquidity, services and debt instruments with one bank can prove to be risky. When financial crises strike from internal or external factors (like margin calls, bankruptcies, etc.), these financial risks are mitigated when the CFO has a back-stop and other banking partner options to keep the lights on and the supply chain flowing. Having major and minor banking relationships can help keep banks competitively working for you while giving your organization financial and liquidity options to keep operations moving.

How to navigate changing currency markets when buying services from overseas

27-05-2020 | treasuryXL | XE |

When dealing with overseas currencies, changes in the currency markets and exchange rates could potentially change the amount that your business will need to pay.

If your business imports tangible objects from another country—such as goods, food products, materials, or machinery—then you’ll need to pay in that country’s currency. However, this doesn’t just pertain to tangible goods imported from overseas. If your business requires services from overseas employees, contractors agencies or service providers then you will also need to pay invoices or contracts in their local currency.

When dealing with overseas currencies, changes in the currency markets and exchange rates could potentially change the amount that your business will need to pay. When making regular payments—such as contract payments—having the right solutions to protect your business from market volatility can protect your business’s bottom line and keep your costs level.

What are your exposures? 

Understanding your business’s currency risk exposures is the first step to countering them to protect your business. You’ll want to consider:

  • How frequently you’ll be making payments

  • Which currencies you’ll be dealing with

  • What type of payments you’ll be sending

  • How volatile your currency pairs are.

Use forward contracts to protect your business from market motion 

If you know that you’re making payments in a volatile market, one solution you can use to reduce the impact of market motion is a forward contract.

A forward contract is a payment method that differs slightly from a typical spot transfer. Rather than making an immediate payment at the current exchange rate, it instead allows you to lock in the current rate and set a date for the payment to be sent at today’s rate.

Here is what you would do:

  1. Specify which currencies that you’d like to exchange and provide the amount you need to pay. This will give you a quote at the current rate.

  2. Enter the date that you’d like to send your payment.

  3. Provide your payment information as well as your recipient’s information.

  4. Once that date hits, the transfer will automatically send at the secured rate.

Forward contracts are a valuable tool for price protection as well as peace of mind. You can secure a favourable rate for your transfer, and you won’t need to worry about missing your payment or the markets moving in the days leading up to it. Your payment will already be secured and scheduled.

If you have a contract, then you know you’ll be making payments. With a forward contract, you can secure favorable rates ahead of time so that even if the market changes, the amount that your contract costs your business won’t.

Get Started

Working with Xe can protect your business from market motion 

A knowledgeable and experienced international business payments provider can help your business to weather the currency markets and easily navigate your payments, so you can focus on your business.

At Xe, we have nearly 30 years of experience in the currency markets. We work with over 13,000 businesses around the globe and offer them the right solutions for their operations, size, industry, and currency needs.

Some of our solutions include:

  • Easy-to-use business payment products including spot transfers, forward contracts and market orders.

  • Personalised FX risk management tailored specifically to your business.

  • Knowledgeable support from our team of currency experts.

 

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 multi billion-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

 

 

 

Should corporate treasurers stop ignoring bitcoins and other crypto currencies?

26-5-2021 | treasuryXL | Pieter de Kiewit

This is a blog by someone who does not own bitcoins or other crypto currencies and does not intend to purchase any soon. Someone who is not a subject matter expert. Someone who told his colleagues not to consider the topic relevant for corporate treasury for a long time. Someone who thought bitcoins are only relevant for extortionists or those who speculate, gamble and hope to get rich quickly. You understand, that someone would be me.

Slowly I am getting this “One wrong-way driver? I see dozens!”-feeling. Newspapers are filling up with blockchain news. Pension funds start seeing crypto currencies as a relevant asset class. Auction houses start accepting payments (Tesla stopped again) and in countries with hyperinflation in South America, people are fleeing into cryptocurrencies, especially stable coins. After a first attempt with the Libra, Facebook is introducing a stable coin with the so-called Diem that seems to be connected to the US dollar.

My main objection always was that I did not see the underlying value. Real estate is bricks, shares are a piece of ownership, bonds should be paid back and with fiat currencies you can buy in a store. I cannot live in bitcoins and my baker does not accept them as payment. But with gold I cannot buy bread either. It has some practical use as a metal but that does not justify its current value. So why measure bitcoins in practical use and underlying value?

The core discussion is about speculation and trust. There used to be times we knew a dollar or gulden could be exchanged for gold, so we trusted our money. But the gold standard is not so standard anymore. Of course the prices of dogecoins, ethereum and bitcoins are extremely volatile but how about the rates of Argentine Pesos, Venezuelan Bolivars, Turkish Liras or pre WOII German Deutschmarks? When you cannot stand the heat, stay out of the crypto currency kitchen but I do not consider volatility a reason to disqualify the asset class.

As to myself, perhaps I just have to accept that I am a laggard or at best member of the late majority in accepting the technology/solution. As to corporate treasurers, the survey shows they have the ambition to educate themselves better on the topic. Of course to be able to answer questions from their colleagues and perhaps to initiate some form of a practical application of crypto currencies. I hope that, next to the Tesla example, in further blogs we can inform you about relevant business cases. About successful implementation but of course also about the bottlenecks like taxation and reporting. There will be enough happening for many future blogs. And I will be someone who communicates differently about crypto currencies.

PS You might enjoy the slides of a recent presentation by Tristan Verhagen, recent Register Treasurer graduate, a great introduction into Bitcoins with provoking insights. See link.

Take care, Pieter

 

 

Pieter de Kiewit

Owner at Treasurer Search

 

 

 

Exchange rate risk | A Challenge for internationally trading companies (Dutch Item)

25-05-2021 | Erna Erkens | treasuryXL |

Handelt u internationaal buiten de Eurozone, dan kunt u als bedrijf te maken krijgen met een valutakoersrisico, ook wel wisselkoersrisico genoemd. Wanneer u goederen of diensten uit een land buiten de Eurozone importeert of exporteert, kan de wisselkoers hoger of lager zijn op het moment dat u de factuur moet betalen of uw geld ontvangt. Dit kan een gunstig effect hebben op uw marge, wanneer u geluk heeft. Het kan ook een negatief effect hebben op uw marge.

Een koersbeweging kan uw winstmarge dus maken of breken. Er zijn heel veel factoren, die het koersverloop van een valutakoers kunnen beïnvloeden. In dit artikel kunnen we niet alle invloeden benoemen. Zeker ook omdat veranderende marktomstandigheden, ook weer nieuwe invloeden naar voren brengen. In dit artikel behandelen we de belangrijkste factoren.

Voorbeeld wisselkoersrisico

Hoe ontstaat een wisselkoersrisico of een valutarisico? Deze termen worden door elkaar gebruikt.  Een voorbeeld: Uw onderneming levert producten aan een onderneming in de Verenigde Staten voor USD 100.000.

Op het moment dat u de producten in de Verenigde Staten levert is de EUR/USD koers 1.2000. Uw 100.000 dollar is dan 80.333,33 Euro waard. De Amerikaanse aankopende partij hanteert een betalingstermijn van 60 dagen en voldoet de factuur dus 60 dagen na levering.

Op dat moment is de EUR/USD koers 1.2500 en is uw 100.000 dollar nog maar 80.000 Euro waard. U verliest in dit geval dus een bedrag van 3.333,33 Euro. Als dit op nog grotere schaal en met grotere bedragen gebeurt, kan dit pijnlijke verliezen opleveren. Zo erg zelfs, dat het kan leiden tot een
faillissement. Dit is echt niet nodig en kan worden voorkomen. 

Wanneer ontstaat een wisselkoersrisico?

Er zijn verschillende manieren en momenten, waarop een wisselkoersrisico kan ontstaan.

Pre-transactierisico

Stel u brengt een offerte uit aan een bedrijf in China. Of u ontvangt van een bedrijf uit een land buiten de Eurozone een offerte. Op dat moment ontstaat er direct een wisselkoersrisico. De wisselkoers kan namelijk op het moment dat de offerte wordt uitgebracht hoger of lager zijn dat het moment, waarop de offerte wordt geaccepteerd. Daardoor kan de offerte opeens gunstiger of juist minder gunstig uitpakken. Dit risico noemen we het Pre-transactierisico.

Transactierisico

Stel de offerte wordt geaccepteerd en omgezet naar een definitief contract. Op dat moment ontstaat er een vast wisselkoersrisico. Bij het contract hoort namelijk een betalingsverplichting of betalingsontvangst in een andere valuta dan de Euro. Als een contract wordt afgesloten, wordt de betaling meestal niet direct gedaan. In de tijd tussen het tekenen van het contract en de betaling zal de wisselkoers zeker veranderen. Dit risico noemen we het Transactierisico.

Economisch risico

Door het wijzigen van een wisselkoers, kan uw concurrentiepositie en de winstgevendheid van uw bedrijf veranderen.

Stel u bent producent van paraplu´s. U produceert deze in de Eurozone. Een ander bedrijf gaat dezelfde paraplu’s verkopen en laat deze papaplu’s in VS maken. Als de dollar goedkoper wordt (EUR/USD stijgt) dan worden de productiekosten voor uw concurrent die de paraplu’s in VS laat maken goedkoper. Uw concurrent kan de paraplu’s daardoor goedkoper aanbieden. Dit is een voorbeeld van een economisch risico. De mate waarin een wisselkoersrisico de concurrentiepositie of de winstgevendheid van een bedrijf beïnvloed noemen we het economisch risico. 

Voorbeeld van een wisselkoersrisico

Het bedrijf Hippe Tassen importeert handtassen uit China. Het bedrijf uit China wil betaald worden in USD. Dit gebeurt heel regelmatig bij Chinese bedrijven. De factuur voor een collectie handtassen is USD 50.000. Hippe Tassen heeft een offerte gekregen met een wisselkoers van EUR/USD 1.2000. Dus de USD 50.000 met de koers van 1.2000 komt in de boekhouding voor USD 50.000 / 1.2000 = EUR  41.666,67.

En dan komt het moment dat Hippe Tassen de factuur moet betalen. Dit kan bijvoorbeeld via Cash Against Documents (CAD). De boot met de tassen ligt in de haven van Rotterdam. Op dat moment moet de betaling aan het Chinese bedrijf worden gedaan. De koers is dan EUR/USD 1.1500.

Hippe Tassen moet de Amerikaanse Dollars aankopen om de betaling in USD te doen. Maar op dat moment kosten die USD 50.000 ineens EUR 43.478,26 (USD 50.000,– /1.1500 = EUR 43.478,26). Dat levert Hippe Tassen ineens een verlies op van EUR 1.811,59 (EUR 41.666,67 – 43.478,26).

Dit was voor Hippe Tassen niet de bedoeling en dit was ook zeker niet nodig. Andersom komt natuurlijk ook wel eens voor. Als de koers was gestegen van 1.2000 naar 1.2500 heeft Hippe Tassen een extra winst van EUR 1.666,67 (USD 50.000 / 1.2000 = EUR 41.666,67 – USD 50.000 / 1.25 = EUR 40.000).

Maar deze gok is het risico niet waard. Geld moet verdiend worden met de verkoop van hippe tassen en niet met verandering van de wisselkoers.

Schat uw wisselkoersrisico in

Het is als Internationaal handelend bedrijf verstandig om goed in kaart te brengen wat uw valutarisico´s zijn om onnodige verliezen te beperken. Om het wisselkoersrisico zoveel mogelijk te beperken zijn er verschillende mogelijkheden. Een ervan is gebruik maken van termijncontracten.

Maak kennis met Erna

Erna is geboren in Rotterdam in 1963. Ze heeft 35 jaar binnen het bankwezen gewerkt waarvan 33 jaar in Treasury.

Erna’s drijfveer is mensen en bedrijven helpen met haar kennis en ervaring. Leren van elkaar en door samenwerking allemaal beter worden. Met die reden heeft Erna haar business EEVA opgericht (Erna Erkens Valuta Advies). Erna’s mening is dat bedrijven geen zakendoen met bedrijven, maar mensen doen zaken met mensen.

Haar basis voor zakendoen is altijd de mens. Een primaire behoefte van mensen is dat ze het gevoel willen hebben dat ze ergens thuishoren. To Feel that they belong. Mensen met een set van dezelfde normen en waarden voelen zich thuis bij elkaar. Na een poosje voelen ze zich veilig en dan ontstaat er automatisch vertrouwen. Dat kost tijd.

Erna’s kernwaarden: Integriteit, loyaliteit, professionaliteit/kwaliteit en samenwerking. Bent u helemaal thuis in alle vaktermen als u aan tafel zit met uw bank? Of schiet er soms een woord voorbij waarvan u denkt? Wat was dat ook al weer?

In uw werk komen internationale transacties dagelijks voor, kennis van het vakjargon is dan belangrijk. Wilt u in gesprekken met uw bank of broker goed beslagen ten ijs komen en uzelf zeker voelen en alle gebruikte vaktermen begrijpen? Dan is deze online masterclass ‘Vakjargon in 5 dagen’ speciaal voor u!

Ja ik wil meer informatie!

Owner at EEVA







Bron

Provocative Bitcoin Analysis by Vrij Universiteit | Treasury Management – Post Graduate Student

| 20-05-2021 | treasuryXL | Pieter de Kiewit

About a month ago I moderated a well-attended webinar “Bitcoin. Is this the new reality in corporate treasury or is it a hoax”.  The majority of the participants were members of the corporate treasury community.

Foundation of the meeting was research done by PGO student Tristan Verhagen. He presented his findings and kicked off with a thorough description, including timeline, of Bitcoin developments so far. Not being the expert, I found his presentation very helpful in getting up to speed. His presentation evolved and brought some very interesting insights that were the basis for an discussion at academic level. The meeting was very well reviewed, a poll showed that participants have an increased interest in finding out if there is room for Bitcoin applications in their firm.

It was a conscious choice not to record the session. Given recent developments in the Bitcoin and crypto currency market and the quality of his presentation, I am happy Tristan allows us to share his slides (see below). I hope you will enjoy his writings as I did.

Bitcoin presentatie VU

Pieter de Kiewit
Pieter de Kiewit





 

 

 

Are you understanding all the costs involved in your international business payments?

20-05-2020 | treasuryXL | XE |

As you search for the right payment provider, keep an eye out for these two main sources of cost: fees and exchange rate.

When making an international payment, there’s one question that’s on everyone’s mind:

“How much foreign currency will I get for my money, after all the charges have been applied?” 

The answer could surprise you.

When making an international business payment, the actual payment itself is only one part of the overall cost to your business. Depending on the provider you utilise for your payment, the exchange rate that you get for your transfer as well as the fees you’ll need to pay (their cost and the number of fees) can vary drastically.

As you search for the right payment provider, keep an eye out for these two main sources of cost: fees and exchange rate.

Fees—the charges you see 

When making an international transfer, a multitude of fees, charges or commission can apply, both for the sender and the recipient.

It can get complicated, as fees can come about in multiple ways. Providers may levy lots of small charges to disguise exactly how much the transfer cost. Some providers may instead apply their fees to the recipient, meaning that less money will come out on the other end of your transfer than anticipated.

When you get your transfer quote, look carefully at the fees that you see throughout the transaction—not just the ones advertised upfront.

Exchange rates—the charges you don’t see 

For many people making international payments, the exchange rate is the deciding factor in which provider they use.

As you search for the right international payment provider, be mindful of the way that they communicate their costs. It’s more common than you think for providers to offer “commission free” or “fee free” transfers that in fact just give you unfavourable exchange rates in return.

As a result it’s often really difficult to compare one provider with another as some will publish charges and others don’t.

Remember exchange rates often change by the minute, so to compare one company to another you need to do the comparison one after the other in quick succession.

What should you look out for? 

When shopping around and comparing your bank to a currency broker, make sure you look at both fees and rates. Compare the costs across providers—even if some claim to use the mid-market exchange rate for their transfers, you’ll find that rates can differ wildly.

Additionally, be mindful of anything that seems “too good to be true”. While some providers will offer you great deals and discounted rates, if you see a provider claiming absolutely no fees, “free transfers”, or advertising rates that are dramatically lower than the rates you see with other providers, it may be an indicator that there are extra, hidden costs.

What will it cost to send money with Xe? 

At Xe, we want to help you to get the most for your money when you make an international payment. Our money transfers come at competitive exchange rates, and we offer money transfer solutions that can help you to ensure that you’ll get a great rate for your transfer. You can lock in a rate for a future transfer with a forward contract, or you can set a Rate Alert to get notified when the rates are in your favour. Currency market volatility can cost you, but working with a knowledgeable provider can help you to minimise the costs.



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 multi billion-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

 

 

 

International Treasury Management Virtual Week | Celebrating 30 years as the world’s leading treasury event

| 19-05-2021 | Eurofinance | treasuryXL |

International Treasury Management is the annual meeting place for 1000s of the World’s most senior treasurers to learn and share experiences in valuable peer to peer discussions. With a reputation for ground-breaking sessions and world-class speakers, our 30th anniversary event will explore the boundaries of the profession, take a glimpse into the future of business, treasury and working life as well as offer the practical case studies on the treasurer’s top agenda items.

Only one treasury event can deliver the comprehensive mix of big picture global insight and granular treasury knowledge you need to make the right choices for the future.


Back to the future, again

Over the past 30 years since EuroFinance’s inaugural conference on International Cash and Treasury Management, much has changed. Treasurers have firmly become business partners, technology experts, risk managers and opportunity spotters. They often lead fundamental change within the company as markets, business models and technology shifts.

What next? This event will delve into how treasury operations can gear up for the future, having learned the lessons from the past. Where, who, what and how will the corporate be in the coming years and what is treasury’s role?

Keynote sessions will offer big-picture insight alongside themed streams including:

  • Payments revisited
  • Risks and Rewards
  • Digital strategies
  • Practical solutions to day-to-day Treasury challenges
  • The power of partnership

What makes International Treasury Management the must-attend event of the year?

  • networking on a global scale – a significant rise in attendees in 2020 boosted the value networking with banks, providers and potential clients… all in one place
  • strategic insights and best practices – get solutions to the challenges you face from treasury and economic experts during keynotes, practical case studies, fireside chats, analytical panels and more
  • future trends – delve into the latest innovations and new technology driving change in treasury, and their practical applications
  • live Q&A with world-class treasurers – enjoy borderless networking and live Q&As with high-profile speakers directly after each session
  • cost and time-efficiency – tune in form anywhere in the world, at the click of a button with no long distance travel or accommodation costs
  • continued learning – catch up on any missed sessions and re-watch your highlights, on demand for up 2 months after the event
  • unite your international teams – as a free event, it offers an opportunity for your whole treasury team to attend. Perfect for encouraging learning and development at all levels

September 27th – October 1st | Virtual

Register Now for Free!

 

 

Successful Businesses Excel At Cash Management

18-05-2021 | treasuryXL | Nomentia |

Nomentia commissioned Forrester Consulting to evaluate the current state of Cash and Treasury management in large global multinationals, the challenges, and the opportunities to move forward.


Embrace future-fit Cash management

We commissioned Forrester Consulting to create a study to understand how global decision-makers will embed cash management excellence into daily operations, processes, and decision-making in 2021 and beyond.

  • Cash flow management tools | To improve visibility and forecasting, companies are adapting cash management, payment efficiency, and cash flow liquidity tools.
  • Improve cash flow visibility | Cash flow transparency, flexible reporting, and data collection can eliminate the high costs associated with the lack of cash flow visibility.
  • Automate core processes | Automating core day-to-day tasks while guaranteeing payment security brings efficiency into the high complexity of treasury operations.

83% of decision-makers at large multinational enterprises say that low Cash visibility has hidden costs 

Understand the cash flow, payment visibility, and efficiency ->  Decision-makers agree that improving data analytics, increasing cash management and payment efficiency, maximizing cash flow liquidity, and improving cash flow and finance reporting are their top priorities in 2021 and beyond.

67% say it’s challenging or very challenging to collect data on cash flow

Technology can help to enable better cash management. Treasury management solutions with analytics, security, and automation can turn treasury from a cost center to a strategic revenue-creating opportunity.

52% of business leaders are prioritizing adopting SaaS Treasury management solutions

Download Study

Learn how companies are enhancing their cash excellence to strengthen and transform cash management operations.