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Buying from UK Importing Agents

In: The Exporter’s & Importer’s Handbook on Foreign Currencies

Author

Listed:
  • A. D. P. Edwards

Abstract

If the UK exporters sell to their distributing agents overseas in sterling, the distributors will invariably protect themselves against the exchange risk by loading the local currency price. UK distributing agents for overseas suppliers will very often do exactly the same, as in company with many other British exporters and importers, they do not understand the forward market. As a result, the loading can sometimes be as high as 15 or 20 per cent but in any event it is much more likely to be more than the amount of any premium involved in the forward purchase of the currency.

Suggested Citation

  • A. D. P. Edwards, 1990. "Buying from UK Importing Agents," Palgrave Macmillan Books, in: The Exporter’s & Importer’s Handbook on Foreign Currencies, chapter 23, pages 114-115, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-11852-6_24
    DOI: 10.1007/978-1-349-11852-6_24
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