DURBAN - Small businesses who are taking advantage of international trade should avoid falling victim to costly foreign exchange risks.
The volatile nature of global currencies could result in businesses losing revenue due to fluctuating prices.
"According to the South African Revenue Service (SARS) trade statistics, between 01 January to 31 December 2018 exports increased by 5.4% from R1 183.58 billion in 2017 to R1 246.94 billion in 2018. It is evident that more businesses are taking advantage of the opportunities presented by doing business abroad in order to remain competitive and diversify their revenue streams," said Zak Sivalingum, FNB Regional Head in Gauteng East.
Sivalingum added "SMEs who are still new on this journey should be wary of currency exchange risks that impact every business that trades abroad, from selling goods and services to the sourcing of raw materials to produce finished goods etc".
He shares a few tips that businesses should consider to avoid these risks: