Accessibilty Links

  • Skip to home page
  • Skip to header navigation
  • Skip to main navigation
  • Skip to content
  • Skip to footer navigation

We use cookies to improve your experience on our website. By continuing to browse, you agree to our use of cookies.

Nedbank Namibia Nedbank Namibia
Login
Personal Online NetBank Business Browse Vacancies
Nedbank Pin

Find a Nedbank Branch

Contact us Contact us Apply online Apply online
Apply online Apply online
Contact us Contact us
  • Personal Online
  • NetBank Business
  • Browse Vacancies
GO
More Options
Nedbank Pin

Find a Nedbank Branch

Contact us Contact us Apply online Apply online
Press Enter

  • Personal

  • Business

  • Corporate

  • Private Wealth

  • About Us

  • Careers

  • News

  • Legal
  • Business
  • Transact
  • Finance
  • Invest
  • Agric Banking Bundle account
  • SME transactional account
  • Business Account

    Our business current account offers overdraft facilities, and can be tailored to support the need...

  • Electronic Banking

    We offer a highly secure, world-class internet-based electronic banking system.

  • Card Solutions

    Card solutions for all your company needs; whether a small, medium or large organisation.

  • Merchant Payment Solutions | Nedbank Namibia Business Services

    Nedbank offers solutions to suite any merchant in need of accepting card payments from customers.

  • Merchant Support

    Support for Nedbank Merchants

  • Global Trade (International)

    Managing your risk and maximising your returns in the global markets.

  • Specialised Solutions

    Solution to help you manage your working capital

  • Value Added Services

    We offer solutions to help you with reconciliations, manage the risk in your business and create...

Your menu has
collapsed

Click the PERSONAL button on the left to expand it again.

Ok. Got it
  • Personal
    • Bank
      • Accounts
      • Credit Cards
      • Professional Banking
      • Digital Banking
      • Customer Call Centre
      • PayToday Cashless Solutions
      • CashOut – Pay for groceries and get cash
      • Send Money
    • Save and Invest
      • Call deposit account
      • Fixed deposit account
      • Notice deposit account
      • Gold Combo Account | Save and Invest with Nedbank Namibia
    • Loans and Finance
      • Student Loans
      • Personal Loans
      • Vehicle Finance
      • Home Loans
    • Financial Planning
      • Financial Planning
      • Estate Planning
      • Wills and Trust Services
    • Insure
      • Assets
      • Credit Protection
      • Funeral Plans
      • Claims Documentation
    • Forex
      • Travel
      • Investments
      • Payments
      • Forex Rates
    • Tools and Guidance
      • Calculators
      • Branch Locator
      • Verify payments
    • Shift
    • Banking fees
  • Business
    • Transact
      • Business Account
      • Electronic Banking
      • Card Solutions
      • Merchant Payment Solutions | Nedbank Namibia Business Services
      • Merchant Support
      • Global Trade (International)
      • Specialised Solutions
      • Value Added Services
    • Finance
      • Loans
      • Vehicle & Asset Finance
    • Invest
      • Call Deposits
      • Fixed Deposits
    • Agric Banking Bundle account
    • SME transactional account
  • Corporate
    • Transacting
      • Electronic Banking
      • Cash Management Solutions
      • Global Trade Services
    • Advisory
    • Trading
      • Foreign Exchange
    • Investor services
    • Events
      • Energy
  • Private Wealth
    • PRODUCTS AND SERVICES
      • Banking
      • Insurance
      • Stockbroking
      • International
      • Philanthropy Services | Making a Difference with Nedbank Namibia
      • Fiduciary
      • Pricing
    • ABOUT US
      • Nedbank Private Wealth
      • Private Wealth Team | Nedbank Namibia Private Banking
  • About Us
    • About Nedbank Namibia
      • Board of Directors
      • Executive Committee
      • Vision, Values & Strategy
      • Integrated Reports | Nedbank Namibia Corporate Governance
      • Interim Results
      • Our Approach
    • Helping to Build Namibia
    • Green and Caring
      • A Celebration of Conservation of Namibia
      • Go Green in Action
      • Green Building Council
      • Nedbank Namibia Green Warriors | Sustainability Initiatives
    • Sponsorships
      • Nedbank and Spar Beach Clean Up
      • Nedbank Cycle Challenge
      • Nedbank Desert Dash
      • Nedbank Spring Festival
      • Polytech of Namibia
      • Rossing Mobile Science
      • Shoe Donations
      • Supporting our National Rugby Heros
      • Womens Action for Development
    • Buildings
      • Courtside
    • Promotions
      • Insurance
    • Legal
      • Nedbank Namibia Code of Banking Practice | Ethical Banking
      • Fraud Awareness
      • Terms and Conditions
      • The Financial Intelligence Act (FIA)
      • FATCA and CRS
        • Frequently asked questions
      • NamPay
      • Money Send
      • Drought Relief Eligibility Criteria
    • Contact Us
      • Contact and Branch Details
  • Careers
    • Young Professional Positions
      • Young Professional Jobs
      • The Bursary Programme
    • Experienced Professional Positions
    • Job Categories
      • Meet The Talent
      • Banking Jobs
      • Experienced Professional Jobs
      • IT, Analysis and Project Jobs
      • Risk, Governance and Credit Jobs
      • Sales and Service Jobs
    • Apply for a Position
      • Investment Banker (NB10) Reporting to Executive: CIB (Re-advertise)
      • Head: Client Coverage CIB Reporting to the Executive (re-advertise)
      • Loan Originator: CIB (NB09) Reporting to - Head: Property Finance
  • News
    • Media Releases
      • Press Release
      • Articles
    • Money Insights
    • Covid19 Up
      • Bank safe
      • Covid-faq
      • Digital ways to bank
      • Covid19 news
        • nedbank-namibia-donates-one-million-namibia-dollars
  • Legal
    • Legal

Foreign Exchange

Nedbank has a team of foreign exchange specialists to provide all the practical support and advice to make managing currency risk simple and cost-effective.

About us

Businesses that trade internationally are likely to be exposed to foreign exchange risks arising from volatility in the currency markets. If not managed effectively, the impact that exchange rate fluctuations can have on a business’s profitability can be significant.

Nedbank has a team of foreign exchange specialists who can provide all the practical support and discerning advice to make managing currency risk simple and cost-effective.

We will work with you to develop an appropriate foreign exchange risk management strategy that effectively meets the requirements of your business, using instruments such as spot cover, forward exchange contracts (FECs) and derivative instruments. 
 

Key services

Spot cover

This refers to foreign exchange transactions where one currency is bought or sold against payment in another currency, at a specified rate, with settlement taking place two business days later. The two-day settlement process, commonly referred to as spot, is international practice and is due to differences in time zones and the time required by banks to ensure that settlement occurs correctly.

Same-day and next-day value deals

Where urgent currency payments or receipts need to be processed, one-day value or even same-day value exchange rates may be provided, depending on the currency cut-off times.

FECs

These are used to hedge exposures to exchange rate fluctuations by ‘locking in’ future foreign exchange rates. 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. There are various types of FECs that can be used depending on the client’s requirements:

  • A fixed FEC can be used only on the specified maturity date;
  • A partly optional FEC can be used within a pre-specified period between two future dates; and
  • A fully optional FEC can be used at any time between the date of establishing the FEC and the specified maturity date.

Swaps

A swap is the simultaneous purchase and sale of identical amounts of one foreign currency for another, but on two different value dates, either spot against a forward date, or one forward date against another forward date.

  • Early delivery (or pre-take up) swaps are used to bring forward the maturity date of an existing FEC.
  • Extension (or rollover) swaps are used to extend the maturity date of an existing FEC to a later date.

Long-dated forwards

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

Currency derivatives

These can also be used to hedge exposure to exchange rate fluctuations, but are fundamentally different from FECs. Whereas the parties to a FEC are ‘locked-in’ to a future transaction in a forward contract, the buyer of an option contract has the right, but not the obligation, to buy or sell a fixed amount of currency at a fixed exchange rate on a predetermined date in the future. The option holder (buyer) can therefore choose the better exchange rate – either the prevailing rate in the market at the time, or the price specified in the option contract. There are two main types of option contracts, namely call options and put options, and these can be used in various combinations to provide structured solutions to meet a client’s hedging requirements. While currency derivatives provide greater flexibility as a hedging instrument, they also have a cost in the form of a premium that is payable at the time of purchasing the option contract.

  • With a call option the buyer has the right, but not the obligation, to buy the underlying currency at a fixed exchange rate on a predetermined future date.
  • With a put option the buyer has the right, but not the obligation, to sell the underlying currency at a fixed exchange rate on a predetermined future date.

Currency futures

A currency futures (CFs) contract is 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. The underlying instrument of a CFs contract is the rate of exchange between one unit of foreign currency and the South African rand. Contracts are cash-settled in rand and no physical delivery of the foreign currency takes place. CF contracts are traded on the JSE and have margin requirements that the client must provide.

Currency orders, stop-loss orders, and call-levels

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

Financial markets information and advice

Pertinent data and astute perspectives on the foreign exchange markets are also provided to our clients.

Additional Information
Not the page you are looking for?
Back to Previous Page

Similar Pages
Payments & Receipts

Nedbank’s payments and receipts transmit your funds securely around the world through the SWIFT network. Secure and reliable; Fast; and more...

Documentary Credits

Documentary Credits enable importers and exporters to mitigate the risks of non-payment and non-performance as stipulated in a contract of sale. Security; Greater Control; and more...

Guarantees

Guarantees are used to provide additional surety of performance and/or payment to your business counterparty

Documentary Collections

Documentary collections offer you a simple, secure method of payment for the exporter to dispatch goods or provide services to an importer and obtain payment through banking channels. Simplicity; Control; and more...

Trade Finance

Thrive in the marketplace with a competitive edge from Nedbank Trade Finance.

Customer Foreign Currency Account

If you make or receive regular cross border payments, having a dedicated Foreign Currency Account will increase the convenience and ease of handling of your foreign currency denominated payments.


Your Feedback Matters

Please take a moment to give us your suggestions

Send us feedback

Contact Us
+264 (81) 959 2222
Send an enquiry

Important Links
FIA
Fraud Awareness
Code of Banking Practice
Privacy Notice
FATCA and CRS
Find a Nedbank Branch
or ATM near you
Nedbank Pin
Find now
Nedbank Pin
Find a Nedbank Branch or ATM near you

Personal
Business
Corporate
Private Wealth
About Us
Careers
News
Social Links
Social Links
Find a Nedbank Branch
or ATM near you
Nedbank Pin
Find now
Nedbank Pin
Find a Nedbank Branch or ATM near you

Useful links & Contacts

Your Feedback Matters

Please take a moment to give us your suggestions

Send us feedback

Contact Us
+264 (81) 959 2222
Send an enquiry

Important Links
FIA
Fraud Awareness
Code of Banking Practice
Privacy Notice
FATCA and CRS

Personal
Business
Corporate
Private Wealth
About Us
Careers
News
Social Links
Social Links
Nedbank Namibia
Nedbank Namibia

Nedbank Namibia Limited Reg No 73/04561.

Authorised financial institution and credit provider.

Nedbank Namibia Limited Reg No 73/04561.

Authorised financial institution and credit provider.

Not the page you are looking for?
Back to Previous Page

Similar Pages
Payments & Receipts

Nedbank’s payments and receipts transmit your funds securely around the world through the SWIFT network. Secure and reliable; Fast; and more...

Documentary Credits

Documentary Credits enable importers and exporters to mitigate the risks of non-payment and non-performance as stipulated in a contract of sale. Security; Greater Control; and more...

Guarantees

Guarantees are used to provide additional surety of performance and/or payment to your business counterparty

Documentary Collections

Documentary collections offer you a simple, secure method of payment for the exporter to dispatch goods or provide services to an importer and obtain payment through banking channels. Simplicity; Control; and more...

Trade Finance

Thrive in the marketplace with a competitive edge from Nedbank Trade Finance.

Customer Foreign Currency Account

If you make or receive regular cross border payments, having a dedicated Foreign Currency Account will increase the convenience and ease of handling of your foreign currency denominated payments.

Loading content...