In the wake of one of the most turbulent and memorable US elections in recent history, thousands business owners & managers across the country are wondering this morning what impact, if any, last night’s result will have for their business. Leading global FX specialists at Irish company TransferMate are calling on those Irish operations that have dealings in the US to “act fast” and to take the necessary steps now to protect themselves from any impending volatility in the currency market.
Barry Dowling, Co-Founder at TransferMate advised,
“With Trump winning the election we’re likely to see a sell off of the dollar by as much as 5-10% and further volatility is likely. Uncertainty rocks the currency markets, and while the results of the election will have an immediate impact on the markets, the residual effects are likely to play out over the coming days and weeks.
The Trump win is very likely to lead to an initial fall in the strength of the Dollar. Irish businesses that import from the U.S. could benefit from this, but those that export across the Atlantic may take a real the financial hit.
Last night we have extended our currency support centre to 24 hour for clients and we have already received a myriad of calls from worried business clients wondering what, if any, steps they can and should be taking. We are advising businesses that have woken up this morning to huge uncertainty around what the election results mean for their business, and are concerned with any potential exposure on the currency market and are under pressure to secure their margins, that they have the option of taking steps now to hold or lock-in exchange rates and guard against any further volatility”.
“The result of the U.S. election could have a bigger impact than when Britain voted to exit the Eurozone earlier this year and the reality of the Trump win could prove to deliver ongoing volatility for the foreseeable – which may well prove costly for those Irish businesses that don’t plan for it.
Business in Britain now pay overseas suppliers over 20% more for their product/services post Brexit than they would have pre Brexit, purely because of the value of Sterling plummeting post Brexit. Only those businesses that locked in exchange rates manages to protect themselves against rising currency costs”.
TransferMate say that Irish businesses looking to book an exchange rate to be paid for by a future date can use Flexible Spot Contracts to buy currencies at today’s rate, securing their profit and most importantly, not eating into their cash flow until they need to pay.
TransferMate advises 3 questions Irish business should ask to quantify their potential foreign currency exposure
- How much foreign do you send or receive in foreign currency?
- What effect would a 5-10% movement have on your margins?
- Is there any event taking place that markets are suggesting is likely to affect these key currencies?
“Should businesses need to make or receive a payment at a future date and want to know today what it will cost at that future date, they can book the exchange rate today, safeguarding their profit and providing a clear cost picture to allow effective budgeting and control. Our team can enter into a spot contract with our clients and agree on the payment terms for that future date. Naturally, this is all subject to adequate approval of credit circumstances”.