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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. |
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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 favourable 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. |
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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 favourable movements and it was also able to leverage favourable market movements between foreign currencies when their local currency's rates were less favourable. These services helped the antique dealer effectively maximise profits in volatile currency markets with a single, streamlined process. |
