currency fluctuations

64% Of Businesses Didn’t Make A Foreign Currency Transaction In Q1 2017

64% Of Businesses Didn’t Make A Foreign Currency Transaction In Q1 2017

64% of UK small businesses failed to make a single foreign currency transaction in Q1 2017, as international trading begins to slow down -according to a report by World’s First. The Global Trade Barometer has revealed that UK businesses transferred 17% less on average per currency transaction in Q1 2017 compared to Q4 2016 – a fall from £48,000 to just £39,000. % of small businesses not making a foreign currency transfer Q1 2016 27% Q2 2016 31% Q3 2016 33% Q4 2016 28% Q1 2017 64%     Current political and economic uncertainty appears to be compounding matters, with 30% of respondents saying they’ve felt the negative impact of exchange rate movements in the last quarter. Moreover, 22% admit their worried about rises in inflation negatively impacting their business, with the same p... »

UK Exporters Gambling On Clinton Victory Could Lose £34.6bn Should Trump Win

UK Exporters Gambling On Clinton Victory Could Lose £34.6bn Should Trump Win

UK small businesses that have gambled on a Hillary Clinton victory in this week’s US presidential election are exposing themselves to a £34.6bn currency risk, according to World First. The Global Trade Barometer, which surveyed 679 UK small businesses, has suggested a shock win for Donald Trump could be problematic for some UK exporters as the safe haven currency, paired with volatile sterling, could leave those who have gambled on a Clinton victory in a “difficult position”. 28% of UK firms currently trade in US dollars and businesses who buy in US dollars have shortened the length of their forward contracts significantly, dropping from an average of 90 working days per contract to less than 70 days – a decrease of over 22%. With parallels being drawn between the US election and Bre... »

Currency Fluctuations

SMEs lose out to currency fluctuations

Small firms importing from the US and the EU lost almost £900 million last year by failing to protect transactions from currency fluctuations, according to foreign exchange firm World First. This year, the pound fell by nearly 20% in value against the dollar between July and October and by 7% in two days between 20 and 22 October. World First’s head of corporate foreign exchange Alex Sullivan said: “The recent dramatic slump in the value of the pound against both the euro and the dollar now means that otherwise profitable sales can become heavily loss–making,” “In the past, following a purchase of goods from an overseas supplier, a small company finance director may well have simply spoken to his bank and opted to exchange money due to be paid at the pre... »