Recent research from No.1 Currency indicates that tough times lie ahead for Scottish businesses involved in international trade, as the pound falls to its lowest ever value against the euro.
According to No.1 Currency, businesses which rely on the import of international goods, to Scotland will struggle as the pound plummets in value.
Currency fluctuations can make a significant impact on business profits, especially for those small and medium-sized enterprises (SMEs) with typically low profit margins.
The down turn in the economy is having its biggest impact on local businesses trading from Scotland who have failed to protect themselves against currency fluctuations.
But Scotland is not alone, it is estimated that 60% of SMEs in the UK, that conduct some of their business in a foreign currency, have no formal strategy to manage the risks of the foreign exchange (FX) market.
Mark McElney of No.1 Currency, said, “International commerce has increased, both across the UK and here in Scotland. It is vital that all companies that rely on international export and import or deal in foreign currencies protect themselves against the risks of the FX market”
Scotland’s smaller and unprotected trade businesses, who rely on importing goods, will suffer the most from the current state of the economic climate.
At the beginning of the year, a company importing €100,000 worth of widgets would have cost approximately £70,000, however, today this import would cost £80,000.
For smaller companies with a low profit margin, this £10,000 extra cost to purchase widgets from abroad, could seriously affect the business’ bottom line.
For those forward thinking companies, Edinburgh-based No.1 Currency, a leading international foreign currency specialist, has been protecting Scottish businesses of all sizes from this down turn in the economy with its forward contract options.
A forward contact allows a company to fix an exchange rate up to year in advance. This enables companies to lock into favourable exchange rates, while providing the added security of knowing exactly how much a future transaction will cost.
Mr McElney said “Few companies these days are truly isolated from the volatilities of the FX market. Those companies with a direct involvement have a duty to protect themselves.”
“The forward contract is the most widely used option for currency hedging, this is because, at no cost to the customer, we provide a risk-free predetermined exchange rate.”
“Essentially we take on the currency fluctuation risk involved with the transaction, allowing our clients to plan and forecast their finances in a secured environment.”
Visit http://www.no1currency.com/ for more information
Monday 25 August 2008
Thursday 14 August 2008
Holiday Money - No.1 Currency Gets You More
As the pound falls to its lowest ever value against the euro, research from No.1 Currency shows its set to be an expensive summer for Scots holidaying throughout most of Europe this year.
High exchange rates coupled with steep bank charges for the use of credit and debit cards in foreign destinations mean that Scots will now be paying around 17% more for holiday expenses than they did at the start of 2007.
No.1 Currency, a leading international foreign currency service, can save Scots as much as 11% by changing their money before they get to the airport.
Founder and Managing Director of No.1 Currency, Mark McElney said, “Most people do not shop around to find the best rate of exchange for their money, leaving it until they get to the airport or choosing to rely on their bank cards. This is costing them far more than it should.”
No.1 Currency, recently listed as one of the top 100 fastest growing private companies in the UK, has a network of 245 Bureau de Change franchised outlets across the UK, offering the most competitive currency exchanges rates on the high street.
“We are the only foreign exchange service to use a franchise Bureau de Change model. This saves huge amounts in overheads and set up costs. We pass this saving onto our customers.”
With the use of travellers’ cheques diminishing and high bank charges for using plastic to make ATM withdrawals abroad, getting cash before you go is still an essential item on most people’s holiday check list.
Most people tend to change their holiday money with their bank or use the bureaux at the airport, however changing money at the airport drives up expenses because banks and foreign exchange outlets share a percentage of their income with the airport operator.
“With our unique franchise business model, 0% commission and the most competitive exchange rates in the marketplace, we can undercut our competitors considerably.”
The average Scot takes around £500 in cash for a week’s holiday to the continent. With an average* exchange rate of €1.236 to the Pound, No.1 Currency customers get €618 for their holiday money.
No.1 Currency operates 77 Bureau de Change outlets in Scotland alone, from Inverness to the Borders. These outlets can be found in all major cities and towns across Scotland. Visit www.no1currency.com to find your nearest store.
High exchange rates coupled with steep bank charges for the use of credit and debit cards in foreign destinations mean that Scots will now be paying around 17% more for holiday expenses than they did at the start of 2007.
No.1 Currency, a leading international foreign currency service, can save Scots as much as 11% by changing their money before they get to the airport.
Founder and Managing Director of No.1 Currency, Mark McElney said, “Most people do not shop around to find the best rate of exchange for their money, leaving it until they get to the airport or choosing to rely on their bank cards. This is costing them far more than it should.”
No.1 Currency, recently listed as one of the top 100 fastest growing private companies in the UK, has a network of 245 Bureau de Change franchised outlets across the UK, offering the most competitive currency exchanges rates on the high street.
“We are the only foreign exchange service to use a franchise Bureau de Change model. This saves huge amounts in overheads and set up costs. We pass this saving onto our customers.”
With the use of travellers’ cheques diminishing and high bank charges for using plastic to make ATM withdrawals abroad, getting cash before you go is still an essential item on most people’s holiday check list.
Most people tend to change their holiday money with their bank or use the bureaux at the airport, however changing money at the airport drives up expenses because banks and foreign exchange outlets share a percentage of their income with the airport operator.
“With our unique franchise business model, 0% commission and the most competitive exchange rates in the marketplace, we can undercut our competitors considerably.”
The average Scot takes around £500 in cash for a week’s holiday to the continent. With an average* exchange rate of €1.236 to the Pound, No.1 Currency customers get €618 for their holiday money.
No.1 Currency operates 77 Bureau de Change outlets in Scotland alone, from Inverness to the Borders. These outlets can be found in all major cities and towns across Scotland. Visit www.no1currency.com to find your nearest store.
Subscribe to:
Posts (Atom)
