The Import Export Podcast
In early 2020, COVID-19 caused disruptions to people and businesses in countries around the world. For the first time, many shipping teams have been forced to work remotely from home. The disruptions has also caused extreme volatility in foreign exchange markets over the world.
Rylan, the Vice-President of Foreign Exchange at Airwallex discusses changes they have observed in foreign exchange markets around the world. We discuss how importers and exporters can have a strategy to manage foreign exchange risks during the volatility caused from COVID-19 disruptions.
For a global transaction to take place, buyers and sellers must first negotiate and agree on terms of supply of goods which will be included in detailed Proforma Invoices, Sales Contracts and Purchase Orders. When the agreed terms are met, buyers make International deposit and balance payments to their suppliers. Rylan discusses how Airwallex provides new software technology for buyers and sellers to collect, convert and transfer money in multiple currencies around the world.
Topics Covered:
- Examples of the extreme foreign exchange movements in the market since COVID-19 disruptions
- Examples of how importers and exporters (buyers and sellers) are typically exposed to Foreign Exchange risk in day to day operations
- Discuss strategies that businesses may consider to manage their Foreign Exchange risk during periods of uncertainty
- Discussion on how long periods of FX fluctuations may last
- How Airwallex provides new technology for buyers and sellers to collect, convert and transfer money in multiple currencies around the world
