INTHEBLACK September 2021 - Magazine - Page 49
SPECIAL ADVERTISING FEATURE
BEST PRACTICE
SOLUTIONS
FOR FOREIGN
EXCHANGE
LOO KIN G TO TRANSFER M ONEY
G LO BA L LY BUT UNSU R E WHER E
TO STA RT ? SAMU EL PITT, OFX’S
ACCO U N T MANAGER , ENTER PR ISE
A N D PA RTN E R SHIPS, OFFER S
TI P S FO R SO M E COMMON
FO REIG N EXC HANGE SC ENAR IOS.
D
ESPITE THROWING FOREIGN
exchange (FX) rates into a state of
flux over the past 18 months, the
COVID-19 pandemic has also been a
breeding ground for opportunity.
Many traditional bricks-and-mortar
retailers have pivoted online and ventured
into global markets, gaining a new
customer base in the process while also
creating security in the event existing
revenue streams slacken due to pandemicrelated restrictions.
Amid such upheaval, FX support can not
only help mitigate revenue loss from poor
exchange rates and fees, but it can also
identify the right solutions for specific
circumstances, says Samuel Pitt, account
manager, enterprise and partnerships at
global money transfer specialist OFX.
“Whether they’re individuals, traditional
businesses or emerging e-commerce
businesses, everyone has a different need,” he
explains. “There’s no cookie-cutter approach.”
FX OPTIONS FOR OVERSEAS TRADE
Growing numbers of retailers receiving
payments from international e-commerce
marketplaces need to contend with a whole
new world of payment gateways, countryspecific rules and regulations, fees and
payment structures. Considering the
different FX options available is key to
capitalising on new ventures.
One such solution is a global currency
account that enables online sellers to collect
funds across different currencies depending
on where their customers are based, make
payments like a local through access to
multi-currency funds, and repatriate all
international revenue back to their home
country when ready, so they are not at the
mercy of currency markets.
“It’s about working with the different
payment gateways and getting the most
bang for your buck, avoiding situations
where you’re doing double conversions or
paying fees unnecessarily,” Pitt explains.
Meanwhile, Australian importers and
exporters hoping to protect their business
from the fluctuating market might consider
currency hedging strategies and tools such as
forward contracts. These allow businesses to
transfer funds up to 12 months in the future
at an agreed rate, so they can forecast and
budget accordingly.
Target rate transfers are another option
that enable businesses to take a “set and
forget” approach.
“Clients can set a target rate and if that rate
is reached, the transfer will be processed. This
can be beneficial if you have time on your side,
or flexibility with when you need to move your
money, as it allows you to keep your eyes on
your business, not on exchange rates.”
TRANSFERRING MONEY ABROAD
It is not just businesses that stand to
benefit from FX support.
Individuals planning to sell US shares or
employee shares in a foreign currency and
repatriate the funds back to Australia, for
example, often look to experts to guide
them through the process. Dealing with
e-trade accounts and dividend payment
dates can be “a walk in the woods”, says
Pitt, particularly if this is the first time
selling overseas shares.
If you are looking to sell US shares, you
need a local US account to enable the share
dealing platform to pay into. FX specialists
can help bridge the gap for these share sale
transactions by administering the overseas
payment and converting it into the desired
local currency.
“Offshore equity management is tricky,
and the correct process is often hard to
identify,” Pitt says. “FX experts can help
people navigate the transfer process of
moving funds from A to B in an
uncomplicated fashion.”
Click here to learn more about preferential FX rates for CPA Australia members
intheblack.com September 2021 49