When was the best time to exchange from SA Rand to US Dollar last week?

?Importers and distributors of products to South Africa, from pretty much anywhere in the world, keep an eye on what the forex exchange rates are doing. On average for 2022 the USDZAR exchange rate is ranging at a daily average of 24c. Don't watch the exchange rates and you can very quickly find yourself paying more for your goods than what you bargained on.

For last week, as an example, from Monday 15 August at 9am to Friday 19 August 5pm the USDZAR ranged 80.7 cents between its lowest and highest price. For last week the best possible time to exchange from Rands to USD was 9am Monday morning right when the banks opened. Last week's 80.7 cents range in volatility means that a $100 000 USD payment would cost you R80 700 more for the exact same thing. Depending on the amount of time you have to make the payment to your supplier (we call this an exchange window) you will be exposed to different levels of currency volatility and risk. This number can be much higher if you have a longer time period to settle supplier payments.

Optimizing ‘the when’ payments and exchanges between different currencies get made is one of the least looked at areas in a company although this is where significant savings can be made. Forex volatility has never in history been this high, the reason why this area of saving is overlooked. In the last 10 years from 2012 to 2022 the USDZAR currency pair has increased from a 8 cents daily average to a 24 cents daily average, that is a 300% increase just in daily volatility, and it is showing no signs of slowing down.

Working with a Forex Timing Consultant is something that has been around since 2012 yet very few companies make use of them. The benefits of working with a timing consultant should include:

• A forex timing consultant can help you implement effective risk management strategies for limiting your forex risks and eliminating forex losses.
• A forex timing consultant can effectively help create forex gains and measure these amounts precisely to the exact Rand amount.
• A forex timing consultant can supply you with the correct tools such as software and apps, and means of automating the monitoring of your forex transactions so that you are free to focus on your core business instead of having to keep your eyes on currency movements constantly.
• A forex timing consultant should cost you a very small amount in comparison to what you save, since an effective and accurate consultant should have a portfolio of many companies as clients.

If you would consider working with a Forex Timing Consultant you have to message me, Quintin Engelbrecht directly on LinkedIn, or send an email to [email protected] and book a free, no obligation consultation with me.

#importexport #currencyexchange #currency #forex #banking #financialliteracy #financialmanagement #strategy #businessstrategy #bestpractices #southafrica Ioannis Xenos Willem Engelbrecht