When sending money to pay suppliers in China, the right exchange rate can increase your profit margins and save you thousands of dollars.
China is packed with numerous manufacturing hubs making it an integral part of the global supply chain and digital economy. In fact, many shipping containers regularly make their way from Chinese ports to Canadian shores as companies restock their inventory. According to globalEDGE, China is number two on Canada’s list of Top 10 import countries.
So, as goods are imported into Canada from China, it naturally follows that many Canadian companies need to send money to Chinese suppliers. Given the large-scale and long-term nature of these transactions, finding the best exchange rates is key to profitability.
Most supplier payments from Canada to China are made in US dollars, so the USD/CAD exchange comes into play with each transaction. However, the local currency, the yuan (¥), is increasingly becoming popular, so the CNY/CAD also matters.
Securing the best available exchange rate means your money is worth more in USD or Yuan. China has been dubbed the “World’s Factory,” so it’s no surprise that many Canadian companies want a piece of the pie.
These companies can save thousands of dollars individually and millions collectively each year by reducing the cost of large-amount FX exchange conversions.
Here’s a quick example and eye-opener: If you purchase a shipment of goods worth $50,000 USD from China, an exchange rate that’s 5% better than traditional banks saves you $2,500 and gives you more purchasing power.
Ready to send money from Canada to pay suppliers in China? Take a quick peek at the USD/CAD or CNY/CAD current trend to discover the most favourable currency pair at the time of payment.
If you’re tired of settling for the high transfer fees and slow payments processing offered by conventional banks, a foreign exchange specialist like MTFX can help you keep more of your revenue. More specifically, a currency specialist like MTFX offers the benefits:
When sending money to China from Canada, you will need:
Yes, you can send money to a bank account in China to make good on your outstanding invoice. Once you have registered your MTFX business account, you can now access it 24/7, anytime, anywhere. In addition, you can automate your payments, which leaves you with more time to focus on core matters. Should you need help, MTFX specialists are always on standby to offer expert guidance.
Many Canadian companies make business transfers to pay suppliers in China. According to Research gate, Canada’s top imports from China include:
This is just the tip of the iceberg, as many Canadian companies use MTFX to send money to China to purchase a wide range of goods.
There’s an easy and hard way to pay suppliers in China. Banks are notoriously expensive, so that leaves foreign exchange specialists like MTFX to cushion you from wild currency exchange rate fluctuations and high currency conversions costs.
Register for an MTFX business online account today and start paying your vendors in China the easy way.
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