BCR Publishing
We are the leading provider of news, market intelligence, events and training for the global receivables finance industry.
Working with industry leading organisations, experts, governments and universities, BCR Publications delivers expertise in factoring, receivables and supply chain finance to a global audience.
BCR has long been a beacon of innovation and excellence in the realm of receivables finance, playing an instrumental role in shaping the industry’s international landscape. Through its comprehensive conferences, insightful publications, and thought leadership, BCR has facilitated crucial dialogues and connections among industry professionals, driving forward the development of receivables finance globally.
Follow BCR Publishing
Free passes
For corporate treasurer roles/functions!
Indian Rupee remains very vulnerable
| 04-10-2017 | Rob Beemster |
What has changed India in recent months?
It seems latest macro-economic data in India have changed the outlook on its currency. The country is well-beloved due to its place under the economic and international sidelines. Apart from drastic measures taken by the government on monetary and fiscal front, the country is usually not on the forefront of economic papers like other BRICS partners.
What has caused the different outlook on the rupee?
A, a rise in CPI inflation ( to 2.4% for July from 1.5% in June )
B, a meagre April-June, 2017 GDP report showing a three year low in growth of 5.7% YoY ( 6.1% in the previous quarter ) This is the fourth consecutive quarter with slowing growth
C, signals of a fiscal deficit above the 3.2% GDP target in the running fiscal year
D, almost a year after demonetisation, M3 and bank lending growth remain well below pre-demonetisation levels, a sign of tight liquidity conditions are hurting businesses
Investors and other members of the financial communities dislike a combination of factors A and B. This has resulted in the fall of INR against euro and dollar in September. Although INR is still one of the most popular Emerging Market currencies, a continuation of disappointing economic data might change this international feeling towards INR. According to RBI data, the recent depreciation is in partly due to equity and bond portfolio outflows.
What to do?
Be aware of a volatile INR. The currency has lost some of its popularity, due to the facts named above. Future is always insecure, take North Korea vs. Trump, how will Brexit change Europe etc. These issues will most certainly have an impact on the dollar and Euro, so may affect the INR as well.
An international trading company, during these unsteady times, should take care of international currency flows. From Sept 8 till Sept 27, INR lost 3 % against the USD. This could be a big stake of the profit margin!
We can help you designing the right structure, whereby a strategy will protect you from harmful currency moves. A lower INR can slam your profit, we help you avoiding this. We know the Indian market. Call us on +31228528579 or mail us via [email protected] and we will help you to solve your currency risk.
Rob Beemster
Owner of Barcelona valuta experts BV
Regulation of ICOs: the end or beginning of a healthy market?
| 29-9-2017 | Carlo de Meijer |
The latest cryptocurrency boom however is beginning to stall as a growing number of regulators worldwide turn their attention to the ICOs world and have decided to come into action. China recently decided even to ban these ICOs. And others such as the US SEC, Singapore, Hong Kong, Russia and others followed soon though in a more lighter variant.
Is this the end of fundraising via ICOs or should it be seen as the beginning of a healthy market?
ICO hype
ICOs have become highly popular. In the past months there has been a complete hype around ICOs. ICOs have allowed digital currency start-ups, to raise millions of dollars quickly, in many cases from ordinary investors. The ICO fever is especially triggered by the success of Ethereum, the platform that invented the digital currency Ether. Already in 2014 Ethereum arranged a very successful ICO.
More than $1,6 billion has been raised worldwide from these ICOs up till now. China for example has seen 65 ICOs and 2.62 billion yuan ($400 million) raised from more than 100.000 individuals so far in 2017.
Read the full article of our expert Carlo de Meijer on LinkedIn
Carlo de Meijer
Economist and researcher
Lessons to learn: a higher euro threatens corporate Europe; how to handle this
| 26-9-2017 | Rob Beemster |
These currency moves will be welcomed when you are importing from the US and/or UK. However, when you are exporter, than you don’t feel jitters but the pain will seriously hurt you. Many exporters see their UK/US market share diminish, or maybe even disappear. Normally, when a currency of an export market drifts down ( so the own currency gets more expensive ) we see price adjustments of the exporter.
First he will decrease his own margins, then he seeks price adjustments of his suppliers. After that , the whole chain will be analysed to look for improvements and cutbacks.
The Chinese have a saying that every crisis offers new chances. What chances would a weaker sterling and weaker dollar offer European exporters?
A, analysing the whole value chain, may offer new insights whereby you can create higher and/or cheaper production Most probably, these insights can give opportunities to improve your sales to other markets as well. Improving your chain, constantly, is a very wise technique to stay ahead of your competition. Before the introduction of the Euro, Germany worked on this strategy for years. Bundesbank was a strong supporter of a firm German mark, so German exporters had to be aggressive and innovative to keep their business alive.
B, doing business outside the Euro territory brings currency risk. This is a component of your business you have to face. However, currency risk on new and running orders can be hedged. By doing so, you will protect your cash flow ( read profit ). When profit margins are low, it is extremely important to have a good currency strategy. But even when margins are fairly high, a long currency move may take off your market share. Sterling has gone down for almost 2 years now. So a “safe market” should be hedged with a currency strategy too. A lucrative market may drift away by an ignorant behaviour of exporters.
Barcelona valuta experts can help you installing a decent currency strategy. We do not look for the cheapest way of doing your transactions but we look to your whole currency process. In the graph, below, you will notice that currency risk is present during the whole process. We can help you from the first step: the offer to prospects till last payments are done.
We have a very interesting proposition for you, a free currency scan. After answering six easy questions, we can judge your currency overall / risk position. We will discuss the result with you, all without any obligation. Are you interested? Call us on +31228528579 or mail to [email protected] and we will pass you the questionnaire.
Rob Beemster
Owner of Barcelona valuta experts BV