Parallel Forwards allow businesses to hedge CNY risk while settling in USD equivalent.

The solution aims to help businesses establish long-term supply chain relationships in China and continues Ebury’s continued dedication to lubricating global business flows.

Ebury is pleased to announce the launch of a new solution for Western buyers to improve long-term relationships with suppliers in China by simplifying currency transactions.

While paying in CNY has a lot of obvious benefits and has become more common in Western-China supply chains, the challenge still remains that some Chinese suppliers insist on USD payments for their own operational reasons.

In these instances, Ebury’s Parallel Forward tool ensures that European buyers who transact with their Chinese suppliers in USD can achieve long-term, stable cost management that otherwise would be threatened by USD/CNY currency fluctuations.

By using this solution, Western buyers eliminate this one-sided CNY currency risk by fixing CNY price and deliver in USD, with the supplier ensuring they receive the desired amount of CNY in USD.

Tom Davies, UK and Ireland Country Manager: “Parallel Forwards will fundamentally improve supply chain relationships between western countries and their Chinese suppliers by ensuring a fairer and more efficient payment system.

“No longer will western buyers be forced to pay over the odds due to currency rate fluctuations that are out of their control threatening the global supply chains that are so crucial for businesses in Europe and the Americas.

“By eliminating this currency risk, we hope that Chinese suppliers will benefit from increased demand fostering new, long-term relationships in a win-win for trade as we emerge from the coronavirus pandemic.”

For more information on Ebury's Parallel Forward or other products please get in touch with us. We are happy to go over your current situation and find the best solution for your business.