Switching to local payment solutions. Guide for exporters
The noticeable structural shift towards de-dollarisation and a multipolar world presents both opportunities and challenges for suppliers. Say for example, if you are a Chinese exporter, you may face currency conversion due to exchange rate fluctuations and regulations while collecting funds from your customers.
Key challenges that you may face as an exporter
FX volatility
Trade contracts often default to the USD or other major currencies. For example, In the last 10 years, the USD/RMB rate has fluctuated by>15%. With increasing USD/RMB volatility, we see more firms in Western countries beginning to pay in RMB rather than USD. If you are a Chinese exporter, you need to convert USD back to RMB, and fluctuations in USD can significantly affect the final export of your goods and services.
Difficult conversations with customers
An appreciating home currency against the USD can make your goods more expensive in global markets due to increased costs, reduced export competitiveness and damaged relationships with your customers. If prices remain stagnant, you may face margin pressure due to rising costs.
Limited access to tailored solutions
The exporters are typically offered off-the-shelf solutions or have limited access to tailored payment and hedging solutions. This leads many suppliers to invoice in USD rather than use the local payment option.
Benefits for exporters
- Avoid difficult conversations: Win customer loyalty by avoiding difficult conversations with clients about price increases due to currency movements.
- Transact confidently: Leverage our global coverage and extensive experience.
- Mitigate FX uncertainty: Save on banking fees by receiving your home currency directly from your customers rather than USD and converting it to your currency.
- Save money: Avoid unnecessary fees when converting USD to your local currency.
Solutions custom-built for exporters
We facilitate local currency payments by sidestepping the dollar and mitigating FX risk. This results in cost-effective, fast and efficient transfers for our clients, giving you the peace of mind they need to transact globally.
- Local collection account: If you are a Chinese exporter, you can open a CNH account in Hong Kong. We also offer local accounts in other currencies such as AUD, EUR, SGD, DKK, SEK, NOK, JPY and and many more to receive funds in your home currency quickly, efficiently, and seamlessly.
- Open currency accounts in 29+ currencies, including CNH, to increase customer loyalty, reduce your bank charges and receive funds faster.
- Manage risk effectively in 60+ currencies while transacting with your international buyers.
