The Greek debt crisis and the fluctuation in the euro over the past month has worried consumers and businessmen alike. Currency fluctuations can make a significant difference to a company’s purchasing power. Foreign exchange experts Caxton FX offered the following advice to British businesses who work with currency.
“The debt crisis in Greece and the wider eurozone periphery is very uncertain. The market is highly sensitive to eurozone headlines, which is triggering major swings in the strength of the single currency. These swings can have a considerable impact on your bottom line. Those businesses with an interest in Europe should pay close attention to news from the debt situation; significant savings can be made if you manage your exposure.”
Companies are often unaware of the risks associated with exchange rate movements; market awareness can make a huge difference. It is important to protect your business from currency fluctuations by using a professional currency company to handle your money abroad.
James Hickman, MD of foreign exchange experts Caxton FX says
“Many companies aren’t informed enough about how currency is converted, meaning that they could lose hundreds in unnecessary charges.”
Companies may be worried about the effect that currency will have on the stock market. For the stock market uncertainty will have a negative effect. Rates vary so much that you can either save or lose up to £50 when exchanging £1,000 into foreign currency. Thus, a few simple habits will result in you saving hundreds.
Five top tips to help:
1.Know the basics: An understanding of how currency works is extremely important. A good understanding of the basics can help you to try and foresee economic problems, which will result in changes in currency rates
2.Ask the experts: Make sure you’re getting the best rate by signing your company up to foreign exchange experts such as Caxton FX. This will ensure you get the best rate for your company. Caxton FX offer advice to businesses who need to exchange large and small amounts of currency
3.Keep reading: Always trust the primary figures from economic reports.
4.Surf the web: Caxton FX offers advice on sending money abroad on its website. Visit https://www.caxtonfx.com/business/ for more information on how to save money when sending money abroad
5.Sign up for free reports: Caxton FX offers its customer free currency reports each morning. Sign up on their website to be kept up to date on issues concerning currency. The report offers a comprehensive review of the world’s major currencies, and factors that affect them https://www.caxtonfx.com/market_analysis/free_market_report.asp
There are many economic indicators, and even more private reports that can be used to evaluate the fundamentals of forex. It's important to take the time to not only look at the numbers, but also understand what they mean and how they affect a nation's economy. When properly used, these indicators can be an invaluable resource for any business.