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Early Engagement

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Alistair was referred to a Global Market Specialist based on Carter Calls’ ongoing AUD and Philippine Peso (PHP) expenses.

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Client Needs

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It was identified that Carter Calls was required to transfer PHP 1.5m and USD 250,000 on a monthly basis.

It was also identified that the company wanted to try and limit the cost of the USD purchase to no more than AUD 345,000 on a monthly basis. That equated to a budget rate of approximately 0.7246.

They also wanted the ability to pay PHP directly and, as the equivalent amount of AUD for that transaction was not that large, they were comfortable with sending a spot transaction on the day.

Specialist
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The solution

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The Global Markets Specialist identified that they could assist the client by:

  1. Providing them with access to Commbiz Markets, where they could purchase PHP against the AUD as a spot transaction online and remit the payment as required. The client would also be able to transfer their USD payments using the same system.
  2. Assisting the client in drafting a hedging policy for their company that would guide their actions in managing their foreign exchange exposures.
  3. Discussing various foreign exchange risk management solutions on their USD exposure that suited their hedging policy.
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Specialist

Spot Transaction

A Spot Transaction provides for the purchase or sale of one currency against another, where the exchange rate is agreed today for physical delivery (settlement) in two business days after the trade date.

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