Exchange rates in Ukraine does not change

According to NBU, for I quarter 2010 financial institutions were able to earn foreign currency transactions of 337 million UAH., Or less than 10% of their commission income. This is less than that of the first quarter of last year, more than 5 times. Back then, “monetary” income of banks amounted to 1.8 billion UAH. Or more than 46% of total fees. Overall, in 2009 the Bank received from foreign currency operations 4.1 billion UAH., Or 25% of total commission income.

At the same time, market participants are referred to as other reasons for the reduction of income, than the stability of the hryvnia exchange rate against the dollar. According to participants, their earnings have decreased because of regulatory innovations.

“The main factors – the increase PF levied when buying foreign currency, as well as sufficiently stringent standards of the NBU in the amount of open foreign currency position,” – says Mr. Molodkin.

Indeed, since 2010 more than twice the fee was increased to the Pension Fund, levied when buying non-cash currency. This was due to the failure within the state budget for the current year. If in 2009 this collection amounted to 0,2% of the amount of currency purchased, then this year during the first five months – 0,5%. Note: the Law on State Budget-2010 provides complete abolition of the levy on 1 June. However, the new rules of calculation of currency positions, approved by the NBU in the spring of 2009, significantly restricted the ability of banks to buy foreign currency on its balance sheet for the implementation of speculative transactions.
Eurosceptics claim

Recently, domestic banks appeared prerequisites for earnings on the euro. As previously reported, the euro against the dollar (and, accordingly, the hryvnia) ranges from 1,21-1,26 USD / EUR. However, bankers can not yet boast of significant earnings. The reasons for this situation is called multiple. “Firstly, our own position on the euro in banks is much less than a dollar. Secondly, the euro is less than a dollar, is used in international payments. In this regard, the bank can not earn a lot of the exchange rate difference when buying foreign currency for customers. Third, the euro is difficult to predict, therefore, unlikely someone understands what it will be tomorrow, “- says Pavel Krapivin, first deputy chairman of the bank” Contract “(Kiev, since 1993, 130 people). . As is known, the total foreign exchange revenue banks receive from the sale and purchase transactions in the interbank currency for corporate clients, their own arbitrage operations within the limit of foreign exchange position, as well as from trading cash currency. This bank fees from the purchase of non-cash currency on behalf of clients are often determined individually, depending on the volume of operations. However, the average tariff is about 0,5% of transaction amount. Recall: in addition to commissions for buying and selling currencies client bankers traditionally earned on exchange. So, buying on behalf of the client’s currency on the interbank market for one course, they actually sell it for that client at a higher rate. This “currency” proceeds the financial institutions do not always depend on the volume of transactions. In this regard, revealing that the circulation of non-cash market in the I quarter of this year grew from month to month.

Read more: http://globalist.org.ua/eng/1443333-ukrainian-banks-cant-earn-on-the-difference-in-exchange-rates

World markets mixed amid China trade data

World stock markets were mixed Thursday, with strong Chinese trade figures to strengthen confidence of some investors, while others from riskier assets on fears that the oil giant could BP in bankruptcy over the Gulf of Mexico oil spill directed.

Oil extends gains above $ 74 a barrel, with prices jumping to a fall in U.S. crude inventories and after Federal Reserve Chairman Ben Bernanke said economic recovery in the U.S. remains on course. The dollar weakened against the yen and the euro enjoyed a slight increase compared to the greenback.

Wall Street was formed to a sell-off on Wednesday, with Dow futures rally to 33 points or 0.3 percent, and the broader Standard & Poors 500 futures up 6.2 or 0.6 percent, to 1,061.80 .

Shares were lower in early European trading opens, with the FTSE 100 index of leading British shares of 0.3 percent, in Germany the DAX off 0.4 percent and the French CAC-40 lower by 0.4 percent.

Better than expected trade data from China helped buoy markets in Asia. Imports and exports both rose by almost 50 percent in May over a year before in a positive sign for growth in the world's third largest economy.

"Chinese export data seemed very encouraging, at least on the surface," said Ben Kwong Man Bun, chief operating officer of KGI Asia Ltd in Hong Kong. "The market is not as anxious as before."

Japan's Nikkei 225 Stock Average added 103.52 points, or 1.1 percent, to 9,542.65. The Nikkei was down as the government said the Japanese economy - the world's second largest - grew a revised 5.0 percent in January-March quarter, up from an earlier estimate of 4.9 percent growth.

South Korea's KOSPI index closed up 4.48, or 0.3 percent to 1,651.70 while Australia's S & P / ASX 200 was up 1.1 percent at 4,435.3. Hong Kong Hang Seng was up 0.1 percent to 19,632.70. Benchmarks in Singapore, Taiwan and New Zealand also ended the day.

However, the Shanghai Composite Index went up by 0.8 percent to 2,562.58, with some investors expect negative headlines when China releases its inflation data Friday, "said Castor Pang, Director of Research at Cinda International in Hong Kong. Numbers are likely to show up 3 percent in consumer prices, and traders are worried that Beijing may, by clamping the other to respond to credit.

"China's stock market is not on stage very well, although export of data is excellent," said Pang. "Investors are still cautious."

Export Import From China

Exporting from China without any local representation or By establishing a sourcing presence in China It is important for companies to understand what strategies are available and how these structures could fit into their existing business models.

Outsource all export activities in China

Sourcing with no representation Many foreign companies may feel that in today's global economy, it is vital for their business to be present in the rapidly growing Chinese market. Not every company, however, has the resources to immediately set up their own entity or send expatriate staff to China. At the same time they may not feel complete loyalty from the local suppliers, trading agents and logistics providers.

A foreign company has the option of establishing a network of logistics providers all around China to assist in the export of goods as suppliers are located in various regions of China. Sourcing in China without any local warehousing facility is naturally the first step for many, but if any company wishes to expand and use the full potential of the China market, a local presence may be unavoidable as consolidated shipments may be required to customers all around the world.

Looking for an appropriate agent The greatest challenge for foreign buyers is to find dedicated, reliable, professional and credit-worthy agents. A long-term, focused and consistent strategy is needed to access and profit in the market. An agent could be a manufacturer who is in a similar field as the foreign company or an import/export company that is well established in the field and has connections and an extensive network with suppliers. Agents both buy and sell the products, or they act as commission agents receiving a sales commission.

A first step towards a buying representation in China would be to identify an agent who will search for reliable suppliers on the Chinese market; however this is not always a recommended method as the agents can be in conflict due to sister companies which produce similar products.

Outsource your "Buying Office" Service providers have developed services where the foreign company can utilize outsourcing services in order to establish their own buying and consolidation network without having to set up their own entity with fixed cost, or loose control over the order transactions to a local agent or logistics provider. As a second step, companies with their own representation can also outsource their local sourcing, invoicing and warehousing.

This effective outsourcing solution provides the foreign company with a customized outsourcing service for a smooth and trouble-free market entry. The foreign company may continue to utilize the service providers for as long as they wish. Usually, after a few years, clients have gained significant experience and access to the market, and are ready to set up their own entity. At this point it will also be possible for the foreign company to then take over the employees, which so far have been working for them in China within the service provider's structure.