Foreign Exchange Products
Cash Transactions/Bureau De Change
These are over the counter transactions for the purchase and sale of Foreign currency in cash. The client presents the cash over the counter or from account and is given an equivalent in the other currency.
- These are transactions done on one day and settlement done after more than two working days. Forward transactions are done with clients who either receive or remit determinable amount of foreign exchange on a definite future date. Cash collateral of 10% of the amount of the forward is required before offering a client the product.
- A forward is a binding contract in which the amounts involved, the rate and the settlement date are specified.
Telegraphic Transfer (TT)
- This is a funds transfer service where the bank remits money on behalf of its clients to foreign countries, in foreign currencies. It is efficient, secure and irrevocable. The rate, charges and value date are specified at the point of doing the transaction. The bank usually settles TT on the same date or the following day while the practice among banks is to settle after two working days.
- The Bank deals in the following Foreign currencies:- USD, GBP, EUR, JPY, CHF, ZAR, CAD, AUD, SEK, NOK, DKK, TZS, UGX, SDG.
FX Fixed Deposits
- These are accounts into which clients deposit specified funds for a fixed period of time and in turn receive preferential rates.
FX Denominated Loans
- Refers to loans to clients advanced in foreign currency. The loans are subject to credit appraisal and pricing is benchmarked on LIBOR or other international benchmarks.