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Read the latest business news, blogs and thought leadership articles from our members, as well as updates on the Edinburgh Chamber of Commerce's work in the city.

News & Blog

Chamber FX Update

Posted: 24th March 2020

We are seeing extreme volatility in currency markets at the moment and have had reports that some banks are not providing prices meaning clients cannot buy or sell currency. As a Chamber member you have access to Chamber FX, which is managed by us here in Moneycorp Scotland.

Navigating FX in volatile market conditions can be daunting. It can also be area that is overlooked – see below why you should, if possible, focus some attention on it (I know there are a lot of other priorities at the moment). The Moneycorp Scotland office are on standby if any member wishes to chat through anything Foreign Exchange related – buying and selling, hedging, international payments etc. You do not have to set an account up with us. The Chamber FX benefit is open to all chamber members regardless of whether or not you trade with us. It is also open to individuals or Chamber businesses who are transferring personal  international cash at this time.

An example of current volatility:

GBPEUR spot  from 1.2047 peak to 1.0746 (yesterday)

For importers who sell GBP/buy EUR

If you needed €500k in February (the recent peak), this would have cost the business £415,039 at prevailing market rates

If you need to buy €500k, it will now cost the business £465,289

£50,250 more due to market movements/no fault of the business

(opportunity is if you are a buyer of GBP, normally an exporter – you would be receiving £50k more)

 

GBPUSD from 1.3388 peak to 1.1550 (yesterday)

If you needed $500k in December (The previous 6 month peak), this would have cost the business £373,500 (market rates)

If you need to $500k today, it will now cost the business £432,900

A staggering £59,400 more due to market movements/no fault of the business

(opportunity – you are a buyer of GBP/exporter – you would be receiving £59k more)

 

Please feel free to call the office on 0131 322 6558 or email scotlandfx@moneycorp.com if you want to discuss.

Business Comment

Business Comment is the Edinburgh Chamber of Commerce’s bi-monthly magazine. It provides insight on Edinburgh’s vibrant business community, with features on the city’s key sectors, interviews with leading figures and news on new business developments in the capital.
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