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Overview

A Brighter range of products

Our Treasury Department offers a brighter range of products that are designed to help you whether you are an individual or a business.
These fall into the three main categories of traditional banking services, financial management, and foreign exchange products.

 

Currencies

 

 Spot Exchange transactions:

A spot transaction is the purchase or sale of foreign currencies for spot delivery. Spot is defined as value 2 working days from the date of transaction. Transactions can also be done for delivery on the same day or next day depending on your needs and the market situation. Spot transactions are offered in all major currencies and many minor currencies.

 Forward Exchange transactions:

Forward Exchange transaction is the purchase or sale of foreign currency for delivery on a future date. This is extremely useful if you have foreign currency assets or liabilities maturing on a later date, to avoid losses on account of movement in rates. The due date of the contract has to be a working day in both the currency centers.

Forward exchange may also be arranged for delivery during a specified period, with the actual delivery date being your choice, subject to 2 working days notice. Failure to deliver currencies under the contract may lead to payment of cancellation charges, which will depend on the movement of exchange rates in the interim period.

Forward exchange is offered in all major, and many minor currencies.

The maximum maturity date will depend on the concerned currency, although for most it is likely to be one year.

 Swap Exchange transactions:

A swap transaction is the simultaneous purchase/sale and sale/purchase of currency for different value dates and at prices that reflect the interest differential between the concerned currencies for the stated period.
This product may be used to extend the maturity of an exchange commitment, or to use cash holdings in one currency to raise funds for a limited period in another.

Swaps are available in all currencies where forward exchange is available.

he maximum maturity date will depend on the concerned currency, although for most it is likely to be one year

 Currency Options:

A currency option is a contract that grants the buyer the right, but not the obligation, to buy or sell a specified currency at a specified exchange rate (Strike Rate) on a specified date (Expiry Date). For this right, a premium is paid to the seller (The Bank), the amount of which varies depending on the nominal amount, strike rate and expiry date. Currency options are one of the most common ways for corporations or financial institutions to hedge against adverse movements in exchange rates.


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