1. FX presentation September 13th 2017
How we can help you save money on foreign currency exchange exposure and international payments
John Sawyer - Account Manager

2. Agenda Moneycorp – About Us Introduction to the FX Market
Volatility and Market Movement
Different ways of Buying Currency
Currency Risk Strategies

3. About moneycorp FCA Authorised and Regulated 1962 1979 5A 1
TTT Moneycorp Limited is authorised and regulated by the Financial Conduct Authority for the provision of payment services.
1962
Company incorporated
1979
Started dealing in foreign exchange
5A 1
Strongest credit rating in the
industry with D&B
One stop shop
Corporate, Private, Wholesale,
Retail
8.1m+
Customer transactions last year
£24.6bn
Traded in currencies last year
10,000 corporate clients
Preferred partner
Telegraph, The Guardian,
BCC, CNN, The Post Office,
The City AM, DIT, The FT

4. The FX Market
Largest financial market in the world - $4.4 Trillion per day
FX market goes on 24 hours a day
More than 85% of FX deals involve the US dollar
Transactional buyers & speculators
Extremely volatile and unpredictable
Becoming increasingly more difficult to forecast, predict and follow
Supermarket shopper

5. What moves the market
Gdp unemployment, maufacturing data, governement popularity polls, – purchasing managers index, bombs, death of apolitical leader -

6. Volatility GBP / USD
Scottish referendum, brexit voting, unsertainty now of brexit! Outcome, forgetting about it – will it go ahead - euro?

7. GBP/USD – the last 20 years.

8. “The only thing that is certain is uncertainty”
Future volatility
“The only thing that is certain is uncertainty”
World events – no warning – 9/11
Article 50 Divorce Proceedings
Slowdown of the Chinese Economy
European Elections – Germany 9/17
FED, BOE, ECB rate rises?
Trumpenomics – The Trump Effect – passing laws, making reforms, North Korea.

9. Different ways to transact currency
Online
Spot
Forward
Market orders
Options
Immediate delivery
Lock in to rates longer term
Target a rate and minimise risk
Right but not the obligation to buy
Over the phone

10. Spot Contract Most common way of buying / selling currency
Spot contracts are generally used if you need to purchase currency and make a payment now.
Spot contracts are priced from the live currency market.
You are at the mercy of the market – if you have known exposure but take no cover that is taking risk. I see more and more companies moving back to the most basic cover method – as soon as risk is identified cover it and negate that risk – spot or forward.

11. Forward Contracts Fix todays exchange rate up to 2 years ahead
Fixed or Flexible contracts
Complete protection from volatility
Purchase obligatory
Credit implication - we need to allocate credit

12. Market Orders
A limit order target’s a better than market exchange rate.
A stop loss order allows you to set a ‘worst case’ exchange rate

13. Options
A vanilla option gives the holder the right but not the obligation to exchange one currency for another at a specified rate on a specified date in the future.
A premium is charged for this option – much the same as an insurance policy.
Full Portfolio of Options Products In all sorts of weird and wonderful stuff
My personal guide/rule - always keep it simple!
Your money flows through segregated accounts at Barclays bank

14. Currency Specialists – we really can help save you money
Approximately 75% of UK companies still just use their bank for FX transactions.
There can be up to a 3% difference in exchange rates between different foreign exchange providers.
The cost of sending an international payment can be £25-40 with some banks. Because of the ChamberFX offer we will do single payments for free.
Case 1 – a N based company ‘V’ receiving USD twice monthly from export sales of their products in to the US – our comparison quote revealed they were getting 2.5% away from the real market, from their bank – our pricing now saves them £ 1600 on every transaction, x 48 = £ 75,000 a year on their average annual volume.
Case 2 – an Essex based company using a swedish bank with 200 branches in the UK – dealing online getting what they believed were very tight competeitive FX prices – I went to their offices and sat with them to see that their rates were 2% each side of the real market price pips each side. We now are able to save them £ 6,000 a year on their average annual volume.

15. Final thoughts
The currency market is extremely volatile and difficult to forecast / predict.
If you have budgeted for a certain rate of exchange, the profit margins can be seriously affected by a negative turn in exchange rate.
You can protect your business from potential downside through a robust foreign exchange strategy.
Look to compare rates to make sure you get a good price.
Consider who you work with for foreign exchange needs to ensure you get the best level of service – is it a relationship?