4 July 2008
World First provides a free "Market Watch" service, where we act as your eyes and ears on the exchange rate market. With rates changing every few seconds you might miss moves up or down so you can leave your target exchange rate levels with us and we will call or e-mail you when they are reached.
Case Study: PMB Tools imports machinery and has to make monthly dollar payments to China.
At the beginning of each month, Phil Blundell, the managing director of PMB Tools, discusses with World First the prospects for the sterling-dollar exchange rate for the coming month. After this discussion, Phil gives World First a 'best-case rate' and a 'worst-case rate' at which he would like to be contacted.
For example, if the market rate was 1.9350 at the start of the month, Phil may instruct World First to contact him if the rate rises to 1.9700 or falls to 1.9200 over the coming month. When the rate reaches either of the two specified levels, World First calls Phil and fixes the exchange rate for the dollar purchase. This protects PMB Tools, in that he will always know the maximum that his overseas goods will cost him in pounds sterling but he benefits if the rate rises.
