Procurement Professional is the official publication of CIPS Australasia

#73 - Low cost country sourcing - from the UK?

24 Sep 2009

The Buyer, in starting this year’s yuletide sourcing exercise for pommie rellies, has noticed that the AUD$ - GBP£ exchange rate has slipped to a long-term low.  The strength of the Aussie dollar and simultaneous weakness of the Pommie Pound has contrived a rare level of exchange. There has rarely been a better time to buy pounds, visit England or import UK stuff.

Traditionally, UK-Oz businesses have been budgeting around $2.45 = £1. By 2007 around $2.35 say. Recently $2.10 was common. Today the exchange rate is around $1.90 to £1 – even 'best' rates of nearer $1.87 are possible. That is a 'currency discount' of over 20% against traditional budget expectations of a currency rate. 

Maybe the UK can become a new low-cost sourcing destination even? Especially for spot-buying and especially when carriage rates are so low as well.

But, that said, currency rates can go down as well as up of course and The Buyer strongly advises you to contact your financial advisor, accountant, personal currency trader, soothsayer and GP if you plan ahead on the basis of exchange rates during our new volatile times......

The Buyer – posted 24th Sept 2009 

The views of THE BUYER are personal and are not necessarily those of Procurement Professional magazine, BTTB Marketing nor CIPS