Regardless of whether the imports are blueberries from Peru, avocados from Mexico or strawberries from Egypt, Jerome de Graaf of StoneX notes that financial transactions are still very often paid in “main” currencies, such as the euro and the dollar. “It may seem like you've made a good deal out of it, but you lose money due to conversion costs as you are completely at the mercy of the whims of the local bank. "Given how tight the margins are in the fruit and vegetable sector, it hurts a lot to have to lose a few cents like that, as that small percentage can make the difference between making a profit and suffering a loss."

Network of banking correspondents

StoneX specializes in cross-border payments in less common currencies. «One of our strengths is our network of correspondent banks. When you want to convert currencies, you have to be able to change them at all times. Not all banks can do that. When you don't have a contact like that, you have to look for a bank that can. We maintain a direct relationship with local banks in Africa, Asia and Latin America to offer the best exchange rate in the local currency at all times and make payments on the ideal date for the currency,” says Jerome.

"We already have 30 years of experience in transactions in emerging markets and make payments in more than 140 currencies to 180 countries." In addition to international banks, our network is used by many charitable foundations, as well as more and more food importers and exporters, including fresh produce traders,” says the StoneX sales director in Benelux.

You notice that interest increases when there are large fluctuations in the currency market. «As volatility increases, companies are more interested in mitigating their currency risks. Last year, when the euro reached parity with the dollar, there was a lot of turmoil in the market. Logical, because if you agreed on a price in dollars of 1,05 with your supplier and the euro-dollar exchange rate becomes 1 to 1, suddenly you have to pay five cents out of your pocket. «Thanks to our competitive banking network, we let local banks compete in one currency. As a result, we always have the best exchange rate on the market. Another advantage is that we quickly deposit the money into the supplier's account. Our service is also transparent. “Customers know in advance how much their net supplier will receive, and also that they will not have to deal with unexpected costs.”

Local entity in Brazil

In Brazil they offer additional services. «Here we have launched our own entity, which allows us to facilitate the work of entrepreneurs both with the entry and exit of funds. This allows us to take care of local payments and process transactions from Brazil to Europe. “Very few companies can do that at a favorable exchange rate.” StoneX now has almost eighty offices on six continents,” says Jerome. He also sees many growth opportunities on the African continent. "Mainly due to infrastructure, Dutch businessmen are reluctant to invest in Africa, but it is a particularly interesting continent to trade due to transit times."

"We also offer our services for local payments in emerging markets, such as for companies that have production plants, where payments have to be made in the local currency for maintenance, machinery and labor, for example . However, these transactions are still very often made in euros and only then converted into the local currency. Paying in local currency can easily save between 1 and 4%. Therefore, take a good look at their costs in local currency and in euros when you request an invoice, and do not hesitate to ask us a question.