How to Manage FX Payments to Emerging Markets

Ireland’s trade with emerging economies saw significant growth in 2024. According to the Department of Foreign Affairs and Trade, total trade in goods between Ireland and Africa grew to €2.6 billion in 2024. Exports of cheese to Egypt stands at 6,000 tonnes annually while imports of tea from Kenya are worth €26 million each year.In Asia too, Ireland is expanding exports to rapidly growing Asian markets beyond traditional partners, seeing strong potential in countries like China, Vietnam, Singapore, and South Korea.

To highlight the significance of this market, Asia Food & Beverages reports that Irish dairy exports to Asia topped €440 million in 2024.

As supply chains become more diversified, demand for payments in exotic currencies is fast becoming more frequent for Irish businesses with global supply chains. However, frictions are common when paying suppliers in non-traditional markets.

Common challenges when paying into emerging markets

Restricted exotic currency offering

Many businesses that hold accounts at traditional banks realise that international payments services are restricted to processing in major currencies with only a few minor currency options available.

High Fees

Exotic currency payments often attract higher charges due to limited market access and additional handling. These fees quickly add up, especially for businesses making regular cross-border payments.

Less competitive FX rates

Low liquidity in exotic currencies leads to wider exchange rate spreads. Businesses often receive poorer rates compared to major currencies, increasing the true cost of payment.

Settlement delays

Payments to emerging markets can take several days to complete due to multiple correspondent banks. Delays disrupt cash flow and can strain supplier relationships.

Local regulations

The transfer of funds in exotic currencies is further complicated by the fact that international payment regulations vary from country to country. Payment delays and rejections are common where banks in emerging economies use different payment formats to the standard BIC and IBAN requirement.

The Challenge for NGOs

These challenges are just as relevant in the NGO and charity sector. NGOs operating in emerging markets need to move vital funds quickly and securely to support humanitarian and development work.

Delays or excessive costs directly reduce the impact of every euro sent. In regions with limited banking infrastructure the ability to deliver funds locally and efficiently is essential.

Paying in Local Currency as a Competitive Advantage

For businesses that have the ability to pay suppliers in their local currency, it can be a strategic advantage. Suppliers often can prefer local currency settlement because it removes their own foreign exchange risk and uncertainty around final receipt amounts.

That preference can translate into better pricing, stronger relationships and improved payment terms.

As supply chains become more fragile, Irish small and medium sized businesses are looking beyond traditional sourcing markets.

Working with suppliers in Africa, Asia, and Latin America allows Irish firms to reduce reliance on established routes that are often dominated by larger players, while building greater resilience and flexibility into their supply chains.

How Fexco International Payments Can Help

As Irish trade and global engagement continue to expand, managing international payments strategically is no longer optional. Choosing the right partner turns currency complexity into a commercial advantage. Fexco International Payments is designed to support organisations operating beyond mainstream currencies.

Unlike traditional banks, Fexco International Payments provides direct access to a broad range of exotic currencies including Brazil real (BRL), Vietnamese dong (VND) and Kenyan shilling (KES) enabling true local currency delivery where banks often fall short.

Keep more of your money by transferring funds directly to local accounts in emerging market countries, bypassing costly correspondent banks. Fexco’s international banking partner networks enable accelerated payments for faster, smoother settlement.

Whether you are paying suppliers in Brazil or transferring much needed funds to Kenya, Fexco International Payments has the technology, reach and compliance experience to reduce the cost and complexity of payments to emerging markets.