Whether you are a business importing from China or just want to make international payments to China, it is important you don’t overlook the different payment options available and make sure you get the most out of your money overseas.
Many businesses are taking advantage of the cheap imports that are available from China, but are they really taking advantage of the payment options that can save them even more money?
The Currency Exchange
The Renminbi (RMB) is the currency used in China but the transfer of funds to China is normally dealt in dollars as it is easier to accept and trade in. Although, there are trades of Renminbi (RMB) offshore, the transfer of funds can only be completed after the approval of the Chinese mainland authorities. Furthermore, dealing with dollars means the completion of payment and for funds to be available can happen on the day. The only delay will be due to time zone differences.
Foreign Currency Exchange Products
With fluctuating exchange rates making international payments to China can be made safer using some of the products below:
- Forward contracts can be helpful when dealing with foreign suppliers and settling on a payment structure. Although it is not a standardized contract, a forward allows both parties to agree on a price at present that can be honoured at a later date. This can secure your rate of payments making it easier to forecast and offset fluctuating exchange rates. However, if the price drops after the forward contract has been agreed upon, this cannot be taken advantage of as the price cannot be changed.
- Spot contract can be used to make payment quickly at the present price there and then, although going through a bank will usually give you an uncompetitive exchange rate.
- Limit order can be used when you have time to pay your supplier. If you anticipate the exchange rate can change in your favour in the near future funds can be transferred when it reaches that rate. Furthermore you can also be protected if the rate goes down to a certain level.
All these foreign currency exchange products can be found using RationalFX!
Ultimately a business wants to get the best price possible when importing from China. It can all come down to what you can get for your money in the conversion rate and that’s when it is really worth looking into RationalFX.
Using an experienced foreign currency exchange broker like RationalFX can ensure you get the best exchange rates possible when buying abroad. We have experience and extensive knowledge with making international payments to China and ensure that the money sent is the best price you can get as our business operate on very competitive rates.
All we need is your payment instructions and the SWIFT code of where you want us to send the funds and you are good to go.
Opening an account with RationalFX makes transferring of funds safer and more convenient; available online or over the phone. Whether a one off payment or regular payments all our transfers are free of charge, which is ideal for doing international business. Register today!
Alternatively have a look at our Xendpay website in simplified Chinese or in traditional Chinese.