Travelex Global Business Payments has issued a word of caution to SMBs about the dangers of changing their purchasing practices because of the rising Aussie dollar.
According to the Travelex Global Business Payments, Australian importers should exercise caution and remain proactive in the area of risk mitigation as the Australian dollar remains high and strong.
Travelex’s national manager Simon Glendenning explained in a media statement that because of the strong Australian dollar many businesses are importing for the first time while others are importing more than they normally do, which could put these companies at risk should the dollar weaken.
“Although the strong Australian dollar gives importers an opportunity to lower their cost of goods or produce more imported products, SMBs should be cautious to not dramatically change their purchasing patterns simply because the Australian dollar is strong,” stated Simon Glendenning.
“SMBs need to take a proactive approach to protecting their margins should the currency retreat from these historic highs,” he added.
Importers should also be aware that some suppliers could take advantage of the high Australian dollar to raise their prices and protect themselves accordingly.
“Businesses need to understand the risk to their bottom line of adverse movements in the dollar and take steps to protect their profit margins regardless of how favourable the trading environment might seem at any given point in time,” said Simon Glendenning.
