Emerging market currencies for SMEs: how to access and use them

There are several situations in which a Swiss SME may need emerging market currencies. For example, a supplier may request payment in its local currency rather than in euros or US dollars. Certain costs, duties or port-related charges may need to be settled locally.

Paying in a supplier’s local currency can offer greater transparency regarding the exchange rate and facilitate more competitive pricing negotiations. These issues are particularly relevant for SMEs entering an emerging market, expanding their supplier base, or who discover that their usual banking provider offers limited access to emerging market currencies.

An important first step is to understand how a currency can be accessed, converted and transferred. The requirements vary from one market to another, so choosing the right payment solution depends on the business and the type of transaction.

What are emerging market currencies?

There is no single universal list of emerging market currencies.

In practice, this term is used for currencies associated with economies described as emerging markets. Examples include the Brazilian real (BRL), Chinese renminbi (CNY and CNH), Indian rupee (INR), Mexican peso (MXN), South African rand (ZAR) or Turkish lira (TRY).

This label does not mean that all these currencies work in the same way. Some are actively traded internationally. Others have more limited liquidity, local documentation requirements or restrictions on how they can be converted and transferred.

To tell whether a particular currency will be easy or difficult to use, it all depends on the country, the transaction and the available payment route.

What are the benefits of paying in a local currency for SMEs?

To negotiate more transparent supplier terms

A supplier invoicing in a major foreign currency may need to manage the conversion back into their own currency. They may account for the cost and uncertainty of this conversion when setting their price.

While offering to pay in the supplier’s local currency does not automatically result in a lower price, it does allow both parties to compare the commercial terms more easily.

You could ask:

• What would the supplier charge in their local currency?

• Which exchange rate or currency margin is included in the price of the foreign currency?

• Who currently bears the currency risk?

• Are there different payment terms depending on the currency used for invoicing?

The comparison should cover the complete transaction rather than the invoice amount alone.

To meet local payment requirements

Certain transactions can only be settled in the local currency or through the country’s domestic payment system. This may apply to supplier invoices and certain local operating costs, fees or services.

The beneficiary may also expect to receive funds through a particular local payment system rather than an international correspondent banking chain. Before agreeing to the payment terms, you should confirm the currency, account details and payment instructions.

To support expansion into a new market

A business entering a new emerging market may initially manage every transaction from its CHF or EUR account. As its activity grows, it may need to pay more suppliers, collect customer revenue or manage recurring costs in the local currency.

At that point, currency access becomes part of the company’s operating model. The business must decide whether it needs to make occasional conversions, recurring local payments, the ability to hold the currency or a broader multi-currency setup.

Why can emerging market currency payments be more complex?

Liquidity affects availability and pricing

Liquidity reflects how easily a currency can be bought or sold without significantly impacting its price. Currencies that are frequently traded generally have more buyers and sellers, as well as more available prices, than those exchanged in lower volumes.

Where liquidity is limited, the difference between the buying and selling price may be wider. Pricing can also vary according to the amount, timing, currency pair and market conditions.

For instance, a company requiring Swiss francs to be converted into a less commonly traded currency, such as the Brazilian real (BRL) or South African rand (ZAR), may not always have access to a direct CHF currency pair. In such cases, the conversion may pass through a more widely traded currency, such as the US dollar or the euro, before reaching the final destination currency. This can influence the overall cost of the transaction.

Therefore, an attractive rate may not be the most cost-effective option overall.

Convertibility and local controls differ by currency

Some currencies can be exchanged and transferred internationally with relatively few restrictions. Others are subject to local foreign exchange controls, documentation requirements or limits on transactions between onshore and offshore markets.

The Chinese renminbi is a good example of this. CNY generally refers to renminbi traded within mainland China, while CNH refers to renminbi traded offshore. Although they represent the same underlying currency, they operate in different markets and are not automatically interchangeable for every payment.

Other countries may require a transaction purpose, supporting invoice or additional beneficiary information before a payment can be processed.

The payment rail matters

A financial services provider may be able to exchange an emerging market currency without offering local payment or collection services in that country. Similarly, it may be possible to send a payment in a given currency without holding a balance in it beforehand.

Local payments generally move through domestic payment rails. International payments may involve correspondent banks and additional processing stages. Availability varies by currency, destination and transaction type.

How can an SME access and use an emerging market currency?

1. Map the payment flow

Start with the commercial transaction rather than the conversion. This provides the information needed to assess the available routes.

Identify:

2. Confirm what the provider can support

The term “currency access” can describe several different capabilities. You should ask the provider precise questions:

3. Compare the complete commercial outcome

For example, compare:

1. the supplier’s local-currency invoice converted at the rate available to the SME

2. the supplier’s foreign-currency invoice

3. payment and intermediary fees under each route

4. the final amount expected by the beneficiary

5. the final amount you receive

6. the operational time required for each option

This makes it easier to see where the currency conversion is taking place and which party is pricing the associated risk.

4. Prepare the payment information early

Emerging market transactions may require more information than a familiar domestic payment.

Depending on the market, this may include:

Complete information reduces the likelihood of manual checks, rejected instructions or avoidable delays.

5. Test the process before it becomes urgent

Where appropriate, you can verify the beneficiary details and test the payment process with a smaller transaction. It should also confirm cut-off times, expected delivery times and the procedure to follow if the payment requires investigation.

Examples and best practices

A Swiss importer paying a Brazilian supplier

A Swiss importer receives two quotations from a Brazilian supplier: one in US dollars and one in Brazilian real.

The importer compares the two prices. It then adds the cost of converting CHF into BRL or USD, the payment fees and any charges that could be deducted before receipt.

The BRL option is only more attractive if the complete commercial outcome supports it. The company must also confirm that it can send BRL through a suitable route to the supplier’s account.

A business arranging a renminbi payment

A Swiss company begins purchasing from a supplier in China. The contract and bank instructions refer to renminbi, but the company needs to establish whether the transaction requires CNY or CNH.

The finance team confirms the invoice currency, beneficiary account and payment route before arranging the conversion. This avoids treating the onshore and offshore forms of renminbi as interchangeable without checking the underlying transaction.

An SME adding several international suppliers

An SME initially makes occasional international payments from its CHF account. It then adds suppliers in India, Mexico and South Africa.

Managing every payment as an isolated exception creates additional administrative work and costs. The company reviews whether a multi-currency account could centralise its conversions and balances, and whether local or international payment capabilities are available for each destination.

The outcome may not be identical for every currency. The value of the exercise lies in creating one controlled process while recognising the requirements of each market.

What should you check before a first transaction in an emerging market currency?

How does SwissFx support emerging market currency payments?

SwissFx provides currency exchange and international payment capabilities across more than 140 currencies. These include currencies used in emerging markets, such as the Brazilian real, Chinese renminbi, Indian rupee and South African rand.

Businesses can review the FX rate before converting and manage currencies from their SwissFx multi-currency account. Local payment and collection capabilities are also available for 30+ currencies.

SwissFx can help businesses understand which payment and currency options are available for a specific market and transaction. Requirements, payment routes and available services can vary by currency, so each transaction should be assessed according to its own operational needs.

Compare SwissFx capabilities for selected emerging market currencies (May 2026)

Capabilities are indicative and may vary according to the transaction, destination and applicable requirements. Contact SwissFx to confirm the available payment or collection route. 

Frequently asked questions