Foreign Exchange
This query is : Resolved
Sanjay Sharma
(Querist)
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.
Can you please suggest me that how can I prevent my self from Exchange Loss.
Venkat Rao Marella
(Expert)
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.
You can take the help of reputed financial service providers who analyze the forex receipts & payments and cover the same.
Sanjay Sharma
(Querist)
06 October 2008
Still not clear, Give some more lights,
It will be better if it can be explained with an example
It will be better if it can be explained with an example
CMA Jitendra Singh
(Expert)
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
(Expert)
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
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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