5 tips for having the best exchange rate closing

Exchange rate fluctuations are part of the routine of those who need to work with international currencies. According to Cristiane Quartaroli, economist and exchange strategist at Ouribank, “one of the main factors affecting the calculation of the currency is supply and demand. But this is not an objective account, after all, political and economic factors in each nation also make a currency stronger or weaker, and this influences the exchange price,” he says. “The only certainty regarding the exchange rate is volatility,” she adds.

Therefore, it is necessary to pay attention to the tools that help alleviate these fluctuations and can even guarantee more profit to the business. Ouribank has listed some tips that may help when closing the exchange rate, see below:

1. Choose the best partner

The exchange can be closed directly with the bank or even with an exchange broker authorized by the Central Bank. All procedures carried out by them must be registered with Sisbacen (Information System of the Central Bank of Brazil).

With over four decades of experience in foreign exchange, Ouribank is a reference in the field and carries out thousands of closing operations every day. The institution has specialized agents that help to understand the needs of each business and to find the best exchange closing.

Counting on the advice of Ouribank makes the process secure and ensures that there are no problems with the procedures.

2. Keep an eye on the spread

When choosing the bank that will close, it is important to keep an eye on the spread, which is the difference between two exchange rates. For a primary market transaction, which takes place between an authorized institution and its clients, the spread comprises the difference between the transaction's exchange rate and that of the interbank market.

At Ouribank, competitive market rates are charged, which make a difference in the final transaction price.

3. Ensure operational agility

The exchange rate fluctuates all the time and may vary significantly on the same day. For this reason, having a partner that performs operations in real time is essential. At Ouribank, agents are able to close the exchange in an agile manner and ensure that the best rate is obtained.

4. Schedule the closing

Predictability is an important factor when closing the exchange rate. When the client is able to plan the operation, the bank has time to analyze the best rate within the expected period and can guarantee the best result.

Therefore, in cases of transactions that allow this scheduling, it is essential to contact Ouribank agents so that they can keep an eye on the best opportunities.

5. Learn about the benefits of foreign exchange hedging

All of these tips on how to perform the best exchange rate close go hand in hand with the foreign exchange hedging. Whether for doing business with individuals or transactions between companies, the tool was created to protect against exchange rate fluctuations.

With hedging, it is possible to fix future exchange rates and help reduce risk in an efficient and secure manner, in addition to reducing operating costs. In other words, when buying an asset outside Brazil, assuming costs to keep someone studying in another country, or signing a contract for import or export, the exchange hedging acts as a guarantee that the currency price will not change.

Bruno Foresti, foreign exchange superintendent at Ouribank, says that there is no ready-made standard. “We help the client decide how much of the amount they want to protect and we find the best option for each type of business. The idea is that the client can focus on the essence of their operation, on selling their products, and we take care of the exchange rate,” he says.