| Situation
An antique dealer not only imports fine and decorative arts from
all over the world, but also sells individual items or entire
collections at foreign auction houses. Generally, the antique
dealer buys currency on a quarterly basis to prepare in advance
for upcoming buying trips and has sporadic incoming foreign receivables
throughout the year. Since the antique dealer operates globally,
its foreign currency needs cross over a number of markets. |
 |
Solution
Ruesch offers a Foreign Currency Holding Balance service to let
businesses of all sizes maintain reserves of foreign funds from
incoming payments or the disbursement of Spot Transactions, Forwards
Contracts, and Standing Orders. The funds may be used to execute
outgoing payments in the same foreign currency or may be converted
into another currency. Used in combination with market monitoring
and risk management tools, Holding Balances enable businesses
to strategically buy foreign funds when the market is favorable
and store them in anticipation of upcoming payment needs. Additionally,
Holding Balances can be leveraged for cross currency settlement
when a cross rate offers a greater potential for savings than
the rate against their local currency. |
|
Outcome
The antique dealer established Foreign Currency Holding Balances
for its most frequently used foreign currencies. Ruesch's market
expertise helped the antique dealer effectively time its transactions
with favorable movements and it was also able to leverage favorable
market movements between foreign currencies when their local currency
rates were less favorable. These services helped the antique dealer
effectively maximize profits in volatile currency markets with
a single, streamlined process. |
