importing

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... »