'Currency fluctuation needs to be managed'

Volatility in the foreign exchange markets are the biggest threats to crossborder transactions and to managing supply chain risks this year, says chief executive of Pangaea Fx, Paul Margarites. He told FTW that a lot of money could be saved by timing what he terms the “point of execution” with regard to the movement of finance, both inwardly and outwardly. “Importers and exporters need to take a conscious decision to ensure their exposure to the rand’s volatility is properly managed by an expert in global trading,” said Margarites. He added that the level of the rand against other currencies was Pangaea Fx’s primary concern and the fluctuations are monitored minute by minute.” It is this vigilance, combined with our global financial trading experience, that allows us to make effective market timing calls,” he said. The company’s attentiveness to currency variations, and its strong partnerships with some of the major banks, allows it to source the most competitive foreign exchange rates, he added, advising the freight industry to incorporate decisions around foreign exchange movements in cross-border payments and receipts. “Too often we find out clients solely look at cash flow in their determinations,” Margarites noted.