Working with an experienced foreign exchange provider like Xe can help to keep your business's importing costs level in the midst of currency market volatility.
March 18, 2021 — 3 min read
Trillions of dollars' worth of goods are imported from the United States each year to countries around the world. However, volatility in the foreign currency markets can complicate importing and has the potential to drive up costs and directly affect a business’s bottom line.
In 2020, countries around the world imported $1.431 trillion USD in goods from the United States. The top 10 product groups were:
Electrical machinery and equipment
Mineral fuels & oil
Optical, technical and medical apparati
Aircrafts & spacecrafts
Plastics & plastic articles
Gems & precious metals
69.3 percent of US imports were purchased by importers in these countries:
The United Kingdom
If your business deals in importing, it’s crucial that you work with a knowledgeable foreign exchange provider that can help you to navigate the currency markets and prepare for market volatility. As we’ve discussed before, changes in currency values and exchange rates can drastically impact your business’s bottom line. If the US dollar strengthens against your country’s currency (or your currency weakens), importing costs could skyrocket.
At Xe, we utilise our 25+ years of experience in the currency markets and diverse suite of money transfer products and services to guide businesses of all sizes across all industries through their international payments, including imports.
Take a look at our guide to learn more about setting up an Xe Business account.
In the past year, significant events including the COVID-19 pandemic and the US presidential election have had an impact on currency values and exchange rates.
Between 2019 and 2021, events such as Brexit talks and the COVID-19 pandemic led to numerous fluctuations in the GBP-USD exchange rate. The rate saw a downward trend during the summer of 2020, reaching its lowest point since 2016. However, in the early months of 2021, the Pound strengthened following vaccination rollouts, and in early February, the Pound hit its highest rate against the US dollar since April 2018.
2020 saw frequent fluctuations in the EUR-USD exchange rate, but the year ended with the rate seeing its highest point since January 2018.
The CAD-USD exchange rate fluctuated throughout 2020, but began an upward trajectory in the final months of the year and continued on through 2021. In 2021, the rate hit its highest point since April 2020, and its growth is projected to continue through Q4 of 2021.
The AUD-USD rate has fluctuated throughout 2020 and 2021. After hitting a low of 0.61 in March 2020, the rate has been steadily climbing. In early 2021, AUD-USD reached its highest point since January 2018.
After hitting a low in March 2020, the NZD-USD rate has been on a steady upward trajectory through 2020 and the early months of 2021, impacted by successful COVID-19 recovery efforts.
Getting started with an Xe Business account can be done entirely online, and will take just a couple of minutes. If you’re interested in managing the costs of your business’s imports, get started today.