Spot deals
A Coffee farmer wants to cut out the middleman and sell directly to sellers in Europe which boosts his company’s revenues and improves its profit margins. The buyer is happy to deal directly with them but they want to pay in EUR, not KES, which is the main cost base for the farmer.
They reach out to their dedicated Mbele FX account manager to sell the EUR into KES which we do at an agreed rate, normally far outperforming the bank. We provide them with a EUR account for the buyer to pay and deliver the KES same day to the farmers bank account; no fees, no fuss.
Forwards
As the business grows the farmer realises that whilst the EUR revenues are staying the same the amount of KES he is receiving each month is changing depending the prevailing rate at each spot trade. The market volatility is making forecasting and budgeting difficult and means that, in reality, his costs are moving around when his revenues are staying the same.
Their dedicated account manager at Mbele works with them to get an idea of the expected EUR revenue over the next 12 months and book a series of forward contracts to ensure that they always sell EUR and buy KES at the same, predetermined, rate each month. Making the business easier to manage and allowing the farmer to focus on other more important parts of developing the business.
Market order
After noticing the large volatility in the USDKES market the finance team at the firm decided to hedge on 70% of their expected currency exposure with Mbele and leave the rest to the sport market. Using market orders we place target rates with our banking partners so that when those levels were reached, even for a few seconds in the middle of the night, a spot trade is automatically booked. These tools ensure the market is working for our client around the clock. These products can target positive moves in the market or protect you from moves against you.
File upload and mass payment
As time passes Mbele FX started working with the finance team at the coffee farm to improve their processes. They realised a lot of time and financial capital was being used in making their monthly payroll and invoice payments to suppliers and contractors. Using Mbele’s market leading online platorm they were able to upload all of their payments on one formatted spreadsheet to our online platform and make all the payments in one go, at the click of single button. Settling in any number of currencies of their choosing.