Alistair was referred to a Global Market Specialist based on Carter Calls’ ongoing AUD and Philippine Peso (PHP) expenses.
It was identified that Carter Calls was required to transfer PHP 1.5m and USD 250,000 on a monthly basis.
It was also identified that the company wanted to try and limit the cost of the USD purchase to no more than AUD 345,000 on a monthly basis. That equated to a budget rate of approximately 0.7246.
They also wanted the ability to pay PHP directly and, as the equivalent amount of AUD for that transaction was not that large, they were comfortable with sending a spot transaction on the day.
The Global Markets Specialist identified that they could assist the client by:
A Spot Transaction provides for the purchase or sale of one currency against another, where the exchange rate is agreed today for physical delivery (settlement) in two business days after the trade date.