The majority of their imports come from Europe and despite the varying sizes of their partner companies, all of their suppliers preferred payment in euros.
The only way the company knew how to combat the fluctuating currency market was to hold off orders and wait for a better exchange rate.
Global import solution
moneycorp introduced the stone company to forward contracts as an alternative to purchasing euros and placing them in a foreign exchange holding account. The forward contract meant that the company could lock in an exchange rate for up to two years ahead for only 10% of the amount hedged on deposit.
By using a forward contract, the stone company was able to pay using an online payment system and ensured they could make orders as and when the business needed to.