Sunday, 5 July 2020

CURRENCY FLUCTUATION IN EXPORT TRADE

naira pounds euro dollar
2017 was a particularly challenging year for exports in Nigeria because of the volatility of the exchange rate locally. The Naira had moved from N380/$US$1 the previous year to a peak of N520/US$ and finally settled at N360/US$1 which is the average rate it has maintained at the Investors and Exporters Forex window for almost 2 years.

Hmmm!!! Folks, let us say the truth and shame the #devil. Many #Nigerian #non-oil products #exporters have been defrauded of huge amount of #money in the process of #exporting #agricultural #commodities and solid #minerals to #foreign #countries. Do you know why? They were not trained on #export #operations, #management, #documentations and the best methods of #payment in export #trade. This is terrible!!! Nigerians cannot continue to lose money to #foreigners in the course of export #business. Exporters, would you like to keep on being scammed? Why don’t you get a practical manual that explains the stages of export trade from processing and #packaging of commodities to receipt of payment by the foreign buyers? It explains export operations, export management, export documentations and methods of payment in export trade? Yes, it is a #contemporary step-by-step #guide to export trade. It tells all the contemporary dynamics in export trade. To get it, click on this link: http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html

During that period of volatility, depending on the stage of your transaction- exchange gains and losses were recorded and they were massive! One of the complexities of international trade is currency fluctuation because trade is usually conducted between different countries that use different currencies.

This poses a need for conversion from the local currency to the currency in which the transaction is quoted which is most times the Pounds Sterling,(GBP),the US Dollar (USD) and the Euro (EUR).

It is therefore necessary as an exporter to understand currency fluctuations and the risks it poses for your transactions. In seasons of currency fluctuations, currency hedging allows the exporter to mitigate his risk by hedging the currency position on his transactions to minimize losses that can arise from currency fluctuations.

Do you know that you will minimize the amount of #money you spend on #food items when we deliver the #foods items to you in bulk at reduced #price from our #farms? For details, click: http://www.tectono-business.com/2020/02/fresh-food-items-supply.html

As an exporter, you can reduce the negative effects of currency instability by keeping the lines of communication with suppliers open, monitoring currency changes regularly and drawing up plans to cope with financial instability.

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