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We can help you reduce the risks of currency conversion if you’re importing or exporting.
Latest foreign exchange rates
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More info
Contact us
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Contact us |
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business manager |
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phone 0800 300 332
(Monday to Friday,
8.30am to 5pm) |
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| Fluctuating foreign exchange rates can impact on your profits. If you import or export, you’re exposed to foreign exchange risk the moment an order is accepted. |
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| We have options to help you reduce that risk. |
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| A Foreign Currency Account can simplify your banking if you make or receive payments in a foreign currency. It removes the need to convert every transaction to New Zealand dollars. |
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| You can use it to |
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manage foreign currency cash flow |
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make advance provision for commitments in a foreign currency |
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earn interest on foreign deposit funds. |
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| Use a Forward Exchange Contract to buy one currency amount and sell another at a fixed exchange rate on an agreed future date. |
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| This means you |
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know exactly how much NZD you’ll pay for imports or receive for exports |
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can protect your business when exchange rates turn for the worse |
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can smooth out the impact of foreign exchange rate fluctuations—if used consistently over the economic/interest rate cycle, which can last 7-8 years. |
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| However, if the exchange rate turns in your favour, you won’t be able to take advantage of any gains as you have contractually agreed to a fixed rate. |
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| Like an insurance policy, a currency option can provide you with peace of mind. |
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| If the exchange rate is worse than your Currency Option, your business will be protected from a currency conversion loss. |
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| If by the Currency Option maturity date the exchange rate has moved to your advantage, the Option doesn’t apply. You can then benefit from taking the current exchange rate. |
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| You will pay a premium for the amount of cover you need. The cost depends on factors including how long until the Option matures, and the volatility of the currencies involved. |
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| We can give you a quote to suit your specific trade transactions. |
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| By leaving a market order with us, you’re specifying the amount of foreign currency you’d like to convert and the exchange rate you’d like to convert it at. |
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| You don’t need to constantly monitor the currency markets as we’ll only do a foreign exchange deal for you when the market trades at the rate you’ve specified. |
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