If you are an international business owner who regularly pays or receives payments in foreign currencies, it is important to have a good view of the exchange rates. Rabo Easy FX allows you to hedge currency risks quickly, automatically, and professionally through a single digital platform.
Rabo Easy FX helps you to close trades easily yourself, including spot, forward, and currency swaps*. You can get started right away from your desktop or with our mobile app. Enter an amount and corresponding currency and then specify when you want to receive or pay the amount. At that point, Rabo Easy FX will provide you with a suggested exchange rate that you can lock in. In addition, you can set rate alerts, notifying you when an exchange rate has reached the level you set.
Already-concluded transactions can still easily be modified if the expected receipt or payment date changes. You always have an overview of all your transactions, online or through the app.
*Additional conditions apply for entering into forward transactions and currency swaps. Please contact the bank for more information.
Suppose you are an entrepreneur ordering goods from China.
You pay a portion when you place your order and a portion when the goods are shipped. Production takes 2 months and you already know how many US dollars you have to pay in total for your order.
There is a risk that in the meantime, the U.S. dollar will strengthen against the euro. In that case, you pay more euros for the same amount of dollars.
Rabo Easy FX allows you to fix the exchange rate now for later. In this case, you either purchase the dollars now or enter into a transaction with delivery in the future*. In the meantime, nothing else can happen to your rate and you pay the supplier the agreed-upon dollars. If the payment term changes, you can easily move the dollars to the new payment date yourself with a currency swap*, so you never receive your currencies too early or too late.
Additional modules
The aditional modules are available for clients who are allowed to hedge derivatives.
Order Based Hedging
Rabo Easy FX has two additional modules that make it even easier to hedge currency risks. If you deal with many (small) orders or invoices, Order Based Hedging is for you. In this module, you can export data from your accounting system to Rabo Easy FX. Next, the platform matches each invoice or order with the best possible transaction and makes you a proposal. You then choose whether to actually carry out these transactions. You can easily make any changes to invoices or orders. That way you save a lot of time, make fewer mistakes, and always maintain an overview.
Suppose you are a wholesaler and regularly order various items from foreign suppliers.
You pay for that in U.S. dollars. Usually you enter multiple currency transactions yourself or you totalize orders to one or more amounts. This takes a lot of time and there is a chance of making mistakes in totalizing or in the date of the hedge.
In Rabo Easy FX, you can upload an Excel sheet from your accounting system.
You will be shown transactions per item and payment date, which immediately shows the relationship between item and rate. If anything changes in the amount or date, you can upload the file again and Easy FX will present you with a new calculation of the currency transactions.
Forecast Based Hedging
If you have easily predictable income and expenses in a foreign currency and is the internal translation rate fixed for the coming period, the Forecast Based Hedging module is the best fit for you. With this module, you enter your expected income and expenses for each period. Rabo Easy FX then automatically calculates your currency risk and suggests one transaction per period. Of course, you always get to decide whether you agree or adjust Rabo Easy FX's proposals manually. If the forecast changes, the platform automatically gives you a new proposal.
Suppose you run a travel agency with a brochure in which euro prices are fixed for the entire season.
You procure the trips from different organizations in America, Australia, and Asia. Based on your history, you can estimate reasonably well when you need amounts in U.S. or Australian dollars or Thai baht.
You don't want to incur exchange rate losses since you're working with fixed euro prices.
That's why you already buy the relevant currencies at the beginning of the season for the coming months. You do this based on the forecasts in Easy FX's calendar, using a hedge ratio of 75%. You can hedge the remainder later when needs become more apparent.
If the forecast changes, you can once more adjust the numbers in Easy FX and the program will calculate the new requirements. Based on this proposal, you will make the best choice so that you will again have the right currencies on time.
Rabo Easy FX always offers an appropriate solution for hedging your currency risks. Learn more about our services and products on our website at www.rabobank.nl/bedrijven/betalen/internationaal-betalingsverkeer/valutarisico-afdekken/easyfx ; and check out our frequently asked questions at https://pub.rabobank.nl/Rabo-Easy-FX-support-page/index.html