Content marketing: New Zealand businesses urged to consider falling dollar

Content Marketing: Over the past month, the New Zealand dollar (NZD) has seen mixed movements. Although it has remained relatively stable against the Australian dollar, it has fallen over the past four weeks against popular currencies such as the Euro and the US dollar.

The graph below shows how the NZD went from 73c to 69c recently.

What Can Businesses Do?
While it is unclear whether the NZD will continue to fall, if the trend continues, companies will face new cost pressures unless they raise prices, which is not always the case. possible.

One solution may be to pre-purchase goods or to accept future prices in NZD. There are also business services that allow businesses to hedge against currency fluctuations for a fee. The key problem with these options is of course that the trend of the NZD can reverse and the currency strengthens.

At a minimum, companies should consider the movement of currencies as part of their short and long term business plan.

General advice for purchasing goods / services abroad
While it is difficult to give generalist advice on how businesses should cope with currency fluctuations, the same cannot be said for transferring money abroad.

Justin Grossbard from compareforexbrokers.co.nz explained that the only rule all businesses should follow is not to use their local bank to pay bills overseas.

Justin explained that banks offer a low exchange rate and often have high transfer fees. Specialist services such as OFX or TransferWise offer significant savings and as an example he provided an example of a NZD $ 1,000 payment to a British Pound Sterling (GBP) bank account.

While setting up these international transfer services may take some time (due to anti-money laundering policies), once set up they only take seconds while the cost savings are significant. .

About Linda Jackson

Check Also

Deloitte acquires leading content production agency Madras Global

NEW YORK, November 29, 2021 / PRNewswire / – Deloitte Digital, the senior consulting firm, …

Leave a Reply

Your email address will not be published. Required fields are marked *