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!

Get your free copy

Can’t get enough? Check out these latest items

Product Manager – Treasury Platform @ Embat

Junior Risk Analyst @ Monex

Four Parts Of A Successful Treasury Search

Forecast accuracy vs. forecast confidence: Why treasury needs both

Head of Treasury & Funding – Berlin

XLconnect – AI in Treasury: Moving Beyond the Hype

XLconnect – World in Transition, Treasury in Transition

Live Session: Should Your AI Agent Be Allowed to Invest Your Cash?