‘May you live in interesting times.’ This much quoted Chinese proverb/curse feels particularly relevant once more.
Markets the world over are currently plagued with uncertainty. Interest and intrigue grows daily. Entering the third quarter of 2015, nobody appears sure what to expect following an already turbulent year.
Greece just announced unexpected economic growth of 0.8%. This outstripped second quarter growth in both the U.S. and U.K. Yet still no deal has been formally signed off on and the world continues to wait. Conversely Germany and Finland have announced performance figures worse than expected.
Meanwhile further afield the Yuan continues its spiralling devaluation. Contagion is feared. Analysts predict China will enact drastic cuts on imports causing growth in Asian markets to stall further. Adding to this gloomy picture, concerns gather that the US federal reserve is due to imminently raise rates, driving up debt servicing costs for emerging markets.
What does this all mean? Should organizations and investors switch focus, look inward and forgo international trade to avoid being exposed to forex risk?
Far from it. Despite volatility in currency markets, going global is still a sure fire way for SMEs to grow and expand. Emerging markets in particular, remain filled with potential and offer attractive opportunities for trade and investment for the short, medium and long term.
What is essential for firms looking to trade across borders in such uncertain times, is a prudent and flexible approach to forex transactions and risk management.
SMEs looking to unlock their global growth potential need to avoid complacency. It is essential they remain proactive in always checking for the most competitive rate. Loyalty to a single bank or broker may appear beneficial but it is often shortsighted. You should never be afraid to shop around for the best rates.
It is of paramount importance that organisations and investors exposed to forex markets are proactive. Market changes can, in an instant, lower profit margins and hike up costs.
Of course for many SMEs, especially those operating internationally, it can be nigh on impossible to stay up to date with the daily changes which occur on the forex markets. What’s needed is the ability to speak to specialists with on the ground local knowledge and experience, who understand the specialised risks of a particular localised region.
That’s where the benefits of using the Kwanji platform in these interesting times truly come to fore. Not only can we help businesses avoid extortionate interest and commission rates. We also boast a wealth of insights from across the spectrum of developed, emerging and frontier markets, including the regions of Africa, Asia and Latin America.
Want more detail? Find out specific examples of how we’ve helped other organisations lower their exposure to forex cost and risk by checking out our spotlights series here.