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How foreign exchange solutions can help your business

10 May 2024 | 4 min read
Foreign Exchange, or FX, plays a vital role in banking for businesses engaged in international trade. Nearly every transaction involving imports or exports, whether goods or services, necessitates a foreign exchange component.

Bendigo Bank’s Financial Markets Product Manager, Waqar Younas explains some challenges businesses may face and how the Business FX team can assist.

What is FX?

FX refers to the exchange of one currency for another. Bendigo Bank’s Business FX team manages currency exchanges for businesses of all sizes, including importers and exporters.

“Currencies are traded in pairs; for instance, AUD/USD represents the exchange rate between the Australian dollar against the US dollar, which fluctuates based on market demand for each currency”, Waqar said.

How can FX help my business?

There are many FX solutions that can assist businesses to manage their foreign exchange needs. Talking to an FX specialist may help to uncover the right solution for your business.

“It’s easy to think that FX, and the opportunity for entering international markets, is something reserved for big business, but as SMEs realise the opportunity to trade internationally, the need to understand the ins and outs of FX becomes critical to your success,” Waqar said.

Need to pay bills offshore or convert payments into AUD?

When a customer needs to pay a bill offshore or convert funds received in a foreign currency into Australian dollars a straight currency conversion used.

What if I am concerned about currency fluctuations?

You can mitigate currency fluctuation risk by locking in a FX rate through a FX contract or ‘Forward’. This contract guarantees a fixed exchange rate for a future date, providing certainty in pricing for your imports or exports.

Market rates can fluctuate, and even a slight change can significantly impact your business’s bottom line. It’s crucial to have the right FX solutions in place to manage these risks effectively.

Need to receive and make payments in a foreign currency?

Foreign currency accounts are useful if you can invoice and pay bills in another currency like US dollars or Euros. They allow you to receive payments in a foreign currency to be used to pay invoices in the same currency or be converted to AUD when it suits you.

Looking for a self-service solution?

Online FX is an electronic dealing system that allows approved business customers to buy and sell currency via Bendigo Bank internet banking. You can monitor and view current exchange rates and book conversions outside business hours, allowing you to book FX deals at a time that is convenient for you.

Need help managing your business FX?

The Bendigo Bank FX team offer dedicated service and a full product suite. Bendigo FX is a team of experts focused on supporting you to achieve your business outcomes.

“Our team know our customers, their challenges, and their opportunities. If you have a question that can’t be answered on the spot, we’ll always get back to you with a solution. We have the experience and knowledge to help you when it matters,” Waqar said.

For example, a company that regularly imports products, can face uncertainty due to fluctuating exchange rates, impacting pricing and profit margins. By partnering with Bendigo Bank’s FX solutions, they can lock in favourable exchange rates through forward contracts. This provides stability in pricing imports, ensuring consistent profit margins and reducing exposure to currency risk.

To learn more about Business FX, explore our website

Your business matters. Make an enquiry today.
Any advice provided in this article is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether any product is appropriate for your situation before making a decision to acquire it.
Terms and conditions, fees and charges, and eligibility criteria applies. Credit criteria also applies for Trade Finance products. The Forward Exchange Contract, Foreign Currency Account and Trade Finance products each have a Product Disclosure Statement and Target Market Determination which are available on our website. Please read the applicable product documents including the terms and conditions and, if applicable, the Product Disclosure Statement on our website before acquiring or making a decision about a product

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Bendigo and Adelaide Bank Limited, ABN 11 068 049 178 AFSL / Australian Credit Licence 237879. Any advice provided on this website is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether it is appropriate for your situation. Please read the applicable Disclosure Documents before acquiring any product described on this website. Please also review our Financial Services Guide (FSG) before accessing information on this website. Information on this page can change without notice to you.

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