No1 Currency Protects Businesses from FX Fluctuations

Released on: August 26, 2008, 1:48 am

Press Release Author: LLLink

Industry: International Trade

Press Release Summary: Recent research from No.1 Currency indicates that tough times
lie ahead for Scottish businesses involved in international trade, as the pound
falls to its lowest ever value against the euro.

Press Release Body: According to No.1 Currency, businesses which rely on the import
of international goods, to Scotland will struggle as the pound plummets in value.

Currency fluctuations can make a significant impact on business profits, especially
for those small and medium-sized enterprises (SMEs) with typically low profit

The down turn in the economy is having its biggest impact on local businesses
trading from Scotland who have failed to protect themselves against currency

But Scotland is not alone, it is estimated that 60% of SMEs in the UK, that conduct
some of their business in a foreign currency, have no formal strategy to manage the
risks of the foreign exchange (FX) market.

Mark McElney of No.1 Currency, said, “International commerce has increased, both
across the UK and here in Scotland. It is vital that all companies that rely on
international export and import or deal in foreign currencies protect themselves
against the risks of the FX market”

Scotland’s smaller and unprotected trade businesses, who rely on importing goods,
will suffer the most from the current state of the economic climate.

At the beginning of the year, a company importing €100,000 worth of widgets would
have cost approximately £70,000, however, today this import would cost £80,000.

For smaller companies with a low profit margin, this £10,000 extra cost to purchase
widgets from abroad, could seriously affect the business’ bottom line.

For those forward thinking companies, Edinburgh-based No.1 Currency, a leading
international foreign currency specialist, has been protecting Scottish businesses
of all sizes from this down turn in the economy with its forward contract options.

A forward contact allows a company to fix an exchange rate up to year in advance.
This enables companies to lock into favourable exchange rates, while providing the
added security of knowing exactly how much a future transaction will cost.

Mr McElney said “Few companies these days are truly isolated from the volatilities
of the FX market. Those companies with a direct involvement have a duty to protect

“The forward contract is the most widely used option for currency hedging, this is
because, at no cost to the customer, we provide a risk-free predetermined exchange

“Essentially we take on the currency fluctuation risk involved with the transaction,
allowing our clients to plan and forecast their finances in a secured environment.”

For more information visit


Issued on behalf of No.1 Currency by LLLink at Forth House, 5 Johns Place, EH6 7EL.
Contact Emma Sykes on (0131) 561 8416 or

Web Site:

Contact Details: Issued on behalf of No.1 Currency by LLLink at Forth House, 5 Johns
Place, EH6 7EL.
Contact Emma Sykes on (0131) 561 8416 or

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