Foreign exchange

Foreign exchange transactions where 1 currency is bought or sold against payment in another currency at a specified rate, with settlement taking place 2 business days later.

For urgent processing of currency payments or receipts, 1-day value or even same-day value exchange rates may be provided, depending on the currency cut-off times.

FECs are contractual agreements between the bank and its clients to exchange a specified amount of one foreign currency for another at a predetermined exchange rate on a specified future date.

These are FECs with a maturity date longer than 12 months forward.

Swaps are the simultaneous purchase and sale of identical amounts of foreign currency on 2 different value dates, either spot against a forward date or one forward date against another forward date.

A currency derivative gives buyers the right, but not the obligation, to buy or sell a fixed amount of currency at a fixed exchange rate on a fixed future date. The holder can choose the better exchange rate, either the prevailing rate in the market at the time or the price specified in the option contract.

Currency futures arise from an agreement that gives the buyer the right to buy or sell an underlying currency at a fixed exchange rate at a specified date in the future. One party to the agreement agrees to buy the CF contract at a specified exchange rate and the other agrees to sell it at the expiry date.

We provide 24-hour monitoring and execution of currency orders, stop-loss orders, or call levels on behalf of clients.

We also provide pertinent data and astute perspectives on the foreign exchange markets to our clients.