The UK economy trotted into recovery earlier this year, but times are currently tough worldwide. Global markets plunged last week, Germany, the Eurozone's star economy, faces the possibility of a recession and UK growth forecasts have been revised downward. Forecasting group EY Item Club estimates growth of 2.4% in 2015, a sharp fall from a previously expected 3.1%.
“Although international trade appears riskier, the rewards can still be potentially greater,” says Carl Hasty, Director of international payment specialist Smart Currency Business. “Overseas markets allow a business room for expansion, allowing them to reach a wider base of potential clients.
“World markets rise and fall. The trick is not to embrace or reject international trade based on every report, but to make calculated long-term decisions regarding overseas trade.
“Businesses trading internationally also need to take the necessary methods to de-risk their international growth, in order to ensure safer passage through the tumultuous waters of international trade.
“Currency exchange volatility is one of the key threats to profitability when trading abroad. Depending on a complex chain of economic events, the rate at which currency is exchanged can mean a significant loss in a business's bottom line.
“Now more than ever, businesses trading overseas need to adopt robust currency-buying strategies in order to ensure that they can benefit from relatively favourable rates.”