Regardless of whether the imports are blueberries from Peru, avocados from Mexico or strawberries from Egypt, StoneX's Jerome de Graaf notes that financial transactions are still very often paid for in “major” currencies such as the euro and the dollar. “It may look like you've done a good deal on it, but you lose money due to conversion costs, as you're completely at the mercy of the local bank's whims. Considering how tight margins are in the produce 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 is specialized in cross-border payments to 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 at all times. Not all banks can do that. When you don't have such a contact, 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 local currency exchange rate at all times and make payments on the ideal date for the currency,” says Jerome.

"We already have 30 years of experience in transactions to emerging markets and we make payments in more than 140 currencies to 180 countries." In addition to international banks, many charitable foundations use our network, as do increasingly more food importers and exporters, including fresh produce dealers,” says StoneX's Benelux sales manager.

He perceives that interest increases when there are large fluctuations in the currency market. “As soon as volatility increases, companies are more interested in mitigating their exchange 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 a price in dollars of 1,05 with your provider and the euro-dollar exchange rate becomes 1:1, suddenly you have to pay five cents out of pocket. “Thanks to our competitive banking network, we let local banks compete on 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 provider is going to receive, and also that they won't 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 nearly 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 companies with production plants, where payments have to be made in local currency for maintenance, machinery and labor, for example. . However, these transactions are still very often made in euros and only later are they converted to the local currency. Paying in local currency can easily save 1-4%. 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”.