Foreign Exchange

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Sanjay Sharma (Querist)
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06 October 2008 Hi, We are paying near about $200000 per annuam and also getting around the same in a year.
Can you please suggest me that how can I prevent my self from Exchange Loss.

Venkat Rao Marella

Venkat Rao Marella (Expert)
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06 October 2008 If your payments & realizations are planned, then you can take the forward cover / option so as to minimize the exchange loss. You can enter into forward sell options of dollar when dollar is running high and so on.

You can take the help of reputed financial service providers who analyze the forex receipts & payments and cover the same.

Sanjay Sharma

Sanjay Sharma (Querist)
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06 October 2008 Still not clear, Give some more lights,
It will be better if it can be explained with an example

CMA Jitendra Singh

CMA Jitendra Singh (Expert)
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06 October 2008 While Mr.Venkat has given sufficient reply ,please contact Forex management institutions ,some banks also provide consultancy in this regard

CA V. Mohanakrishnan

CA V. Mohanakrishnan (Expert)
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06 October 2008 hedging is only a tool.
it also depends on the maturity period of your payments as well as receipts from the transaction date.
it is best to discuss with banks and forex institutions apart form your own view on how the foreign currency exchange rate moves

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