Speed matters, "just-in-time"service facilitates business growth
Thanks to Hong Kong’s position as the world’s top trading hub, the Greater Bay Area offers a unique seedbed for the development of trade. Faster connectivity between Guangdong and Hong Kong is thus essential for trading companies to fully capitalise on the strength of the area in order to enhance their global competitiveness. A GBA-based trading company, in particular, has benefitted in a big way from this solution.
Three to four days a week, the company needs to exchange RMB for USD to purchase raw materials from its Hong Kong-based supplier. However, due to Covid-19, global commodity prices went through some wild swings and exchange rates were far more volatile than ever before. If the company fails to pay its supplier in USD on time, the cost of raw materials would be dramatically different. So it is critical for the company to lock in the best exchange rate and pay its supplier on time in order to secure continued business growth.
One of the highlights of the solution is that funds can arrive at the beneficiary bank in 2 minutes the soonest after the payment instruction is issued. With this innovative digital solution, the company has come to realize how "fast"cross-border payments can be and, as a result, how much easier it is to manage its business now. "It can help us locking in the import cost and the currency exchange rate, and enable same-day cross-border payments. It has delivered real operational efficiency gains and financial cost savings for us."said the company owner with a tinge of emotions.