The Chancellor of the Exchequer, George Osborne has set a
target of one trillion – or one thousand billion – for the value of UK exports by 2020. Some might say this
is an overly ambitious target, especially as recent figures showed that UK exports actually fell for June amid
ongoing global uncertainty.
However, while the Chancellor’s target may well have been
set with headline writers in mind, I also happen to think that putting exports
at the heart of economic strategy and raising the profile of exporting
generally sends out exactly the right signal to UK companies right now. In an
era of globalisation, countries that have buoyant exports sectors are better
placed to improve living standards as a whole – just ask Germany , the world's third largest exporter
with $1.408 trillion exported in 2011.
In many industries in the UK ,
where local markets are becoming increasingly saturated and demand is – in many
cases - contracting, having an international arm is now a necessity.
The only note of caution I would sound with regards to
exporting is the issue of foreign exchange. As
currencies around the world continue to fluctuate significantly, a robust
currency strategy is becoming a ‘must have’ for those of you engaged in
international trade. The likes of the Indian rupee, the US dollar, the euro and UK sterling are all seeing ongoing
volatility as authorities around the world continue to scratch their heads
about the issue of debt. Implementing a currency strategy can negate the
currency fluctuation risks for companies engaged in international trade.
At Smart
Currency we adopt a range of
techniques such as forward contracts and spot contracts to provide stability to UK exporters and importers. We also help
exporters to maximise margins by offering significantly better-than-bank
currency exchange rates.
Until worrying debt issues in the likes of Greece , Spain and Italy are resolved, we can expect to see more currency
swings in the coming months. Whether you import or export, now is the time to
hedge your bets by adopting a sensible currency strategy to protect yourself
from further market volatility.
For more information on Smart Currency Business call: 0845 638 0571 (or
+44 (0)207 898 0541 from outside the UK )
or visit our website at: SmartCurrencyBusiness.com
No comments:
Post a Comment