Importing from China? We have good news. Well maybe not good, but we would just like to reassure you that despite the constant TV coverage it’s not all doom and gloom.
Yes, on the face of it, it looks dire! GBPUSD is now at 1.06, down from 1.31 in April, that’s a 19% increase in pricing for importers at a time of already acute inflationary pain. For those unprotected this represents a huge shift in profit margin and necessary price increases to customers.
Okay, so we’re not painting a very rosy picture so far. But, with the FX markets on everyone’s lips at the moment we know it’s no different for you, we’re here to help. In such extreme times it is the support of a partner that can unravel the complexity of the news flow coming from markets, and provide you with a competitive edge through insight and unique data.
One of the benefits of really getting to know our clients is understanding their pinch points. It’s sometimes not just about the FX solution or execution, it’s going deeper into their business to help them pull every lever possible in times of stress.
We know that a lot of our clients import from the Far East. And, for businesses importing from China we see a potential opportunity to defend a blanket increase in prices from China, here’s why:
There is no denying that there potentially hasn’t been a tougher period for UK corporates to import from China, and potentially just to operate in general with the squeeze in cost of living in the UK. However, there are tactics you can deploy and key insight at hand. These will allow you to strengthen your negotiating position with your supply chain at a critical time and separately deploy an affirmative risk mitigation strategy to combat the current sterling crisis. Let’s start the conversation and understand what your business needs.
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