Maximising Success in 2024 with Effective Currency Management
Are you aiming to enhance profits in 2024 while dealing with international clients and exploring new markets? Here are some tips on how to make this year your most successful yet.
Diversify your savings
While it may be tempting to transfer funds into your domestic currency immediately after receiving payment, resist the urge. Retaining funds in various currencies is prudent, particularly if favourable exchange rates are anticipated. As well as helping with finances, this approach can foster better relationships and efficiency with global suppliers, warehouses, employees and customers, as having their preferred currencies on-hand will result in quicker transactions.
Anticipate fluctuations in business from specific markets, especially during their peak seasons. Stay informed about foreign exchange (FX) markets, economic news, and expert insights. Further, if international business is a key component of your 2024 strategy, consider establishing an in-house treasury department to stay ahead of competitors.
A proactive approach to currency management, including having funds in accessible accounts for quick exchange, is essential. You should also be mindful of regulatory concerns like anti-money laundering rules when handling large sums.
Liquidity in your finances means being ready for unexpected expenses without incurring interest payments. This responsiveness not only saves money, but also strengthens your reputation among suppliers and clients.
Given current inflation levels, stockpiling products can also be cost-effective. While warehousing incurs expenses, it also enables quicker response to rising demand. Ensure strong relations with warehouses near both your production centres and markets, and be prepared with the necessary currencies or a cost-effective and flexible FX account.
Prepare for economic shifts
Despite economic uncertainties, consumer spending remains high. For instance, the record online spending of US$9.8 billion on Black Friday 2023. However, due to the average person’s dwindling liquidity, this spending trend seems unsustainable. Expanding your market reach ensures a safety net in case of economic downturns in major economies like the US.
eCommerce businesses should offer diverse payment options, including buy-now-pay-later (BNPL) services, which are gaining popularity – particularly among Gen Z – due to their convenience and competitive interest rates. For businesses, this is promising - especially given the BNPL market is forecast for a US$3.7 trillion valuation by 2030. Incorporating these options can attract a wider customer base and position your business proactively.
Currenxie’s Global Account can help your business access a range of payment methods, including the most popular BNPL services. By consolidating your cross-currency needs alongside a solution that helps shoppers with their liquidity, you’ll be able to target a wider range of prospective customers without compromising your cash flow.
Leveraging a Currenxie Account
With a Currenxie account, you can hold 20+ currencies and exchange at a rate up to 8x better than you’d get with banks. By saving on FX and offering these savings to your customers, you can enhance their experience with your service.
As you navigate the complexities of modern business, where speed and convenience are paramount, having a versatile cross-currency solution like Currenxie’s Global Account is invaluable.
If one of your New Year’s resolutions is improving your business’s speed, savings, simplicity and scale, sign up for a Currenxie Global Account and make this year your best yet.