Foreign Exchange Services: Helping business customers transact internationally
Find out how an FX relationship benefited World Health Partners in making key decisions involving international transactions.
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Doing business internationally can open up exciting new opportunities. It can help you expand into new untapped markets, increase the exposure of your products and services, and possibly rejuvenate your business. To take full advantage of these opportunities, small business owners should know what options are available to help manage the risks of fluctuating foreign exchange rates. Strategies to manage foreign currency risk include hedging a foreign currency exposure by locking in an exchange rate for a future transaction, taking advantage of the ability to conduct business internationally in U.S. dollars or foreign currency, and utilizing a multicurrency bank account.
As a nonprofit transacting internationally, World Health Partners needed to find a bank that could support an effective currency management strategy.
KAREN PAK OPPENHEIMER:
World Health Partners is an international nonprofit organization that works to bring health care as close to the doorstep as possible for rural communities. World Health Partners operates in India and Kenya with our administrative headquarters in San Francisco. And what we look for in a bank is someone who can help us stay nimble, who makes sure that our money is safe and provides us the services that we need.
When I first met with World Health Partners I quickly realized that we would need to take a conservative approach to how we manage their foreign currency needs.
Even though we're not a large corporation, we feel that we still get very personalized services from Foreign Exchange. Most of our funding comes from private foundations here in the U.S. in U.S. dollars and what we have to make sure is that we are able to maximize those dollars in the countries where we work.
With that in mind, I recommended our multicurrency account or, in this case, an Indian rupee denominated account to manage their FX currency risk.
When a business has both payables and receivables denominated in the same foreign currency, a multicurrency account can be an effective solution. The account allows funds to be deposited, held, and paid in that foreign currency without conversion to U.S. dollars. These funds can then be used to initiate foreign payables online, by check or wire. Multicurrency accounts can essentially take the rate fluctuation risk out of the equation and make foreign purchases and sales easier and more flexible when transacting in the same foreign currency. It is also easy to convert these foreign funds into U.S. dollars online when necessary or when the market rates are favorable. World Health Partners found a strong supporter in Wells Fargo, a bank whose core values are about helping businesses with trusted relationships and personalized service.
Well, one of the most important things for us is that trust we have in our relationship with Brian at Foreign Exchange, and we turn to him for any issues we have.
And in the case of World Health Partners, given what they do, the importance of what they do, I think everything that we recommend should make things easier for them and should also save them money.
We feel pretty confident that as we expand to other parts of the world that Wells Fargo will be able to help us do that so that we can bring health services within walkable distance for everyone.
Thinking about expanding your business globally? Find out what topics you may want to consider.