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Corporate foreign exchange with Bidvest Bank

By Bidvest Bank
14-06-2011
Very simply, one can describe foreign exchange (forex) as a market which players enter into in order to exchange amounts of one currency for amounts of another currency. The market dates back to international corporate foreign exchange, when parties traded goods and required the settlement of currencies between exporters and importers. This is certainly not a modern practise, and hence the evolution of private and corporate foreign exchange.

Forex is an organisational framework or over-the-counter market. In other words, the market operates in financial centres and via the Internet, telephone and fax throughout the world. Currency amounts that are bought and sold are rarely delivered in tangible form; rather, they are transferred in electronic form between dealers’ accounts. The likelihood of making a profit on your investment using corporate foreign exchange is increased owing to the fact that forex is one of the largest financial markets in the world, and it is open for trade services 24-hours a day.

Bidvest Bank understands South Africa’s complex foreign exchange control regulations and is able to assist corporations that engage in foreign exchange activity. Our comprehensive range of corporate foreign exchange products is tailored according to our expert knowledge and understanding of the market. In addition, we facilitate foreign exchange and business dealings for those wishing to export and import capital goods, machinery and other products into and out of South Africa. Contact Bidvest Bank with your specific exchange control queries, or browse through our corporate foreign exchange products.

Business foreign exchange products

Bidvest Bank offers trade services for all major global currencies. However, international transactions are influenced by a variety of regulatory and economic conditions. Bidvest Bank provides effective solutions in mitigating the risks of fluctuating currencies through the following products:

  • Trade services: Bidvest Bank’s trade services team assists with international payments, for example, open account payments, where an open account exists between an importer and exporter (with Bidvest Bank as the collecting agent). Another example is foreign bills for collection, where a South African exporter is able to collect payment from foreign clients. Other products include letters of credit, guarantees, trade finance loans and customer foreign currency accounts. Find out more about Bidvest Bank’s trade services products.

  • fxpaynet: Bidvest Bank offers a convenient and secure online corporate foreign exchange solution. In partnership with Travelex, which provides a host of global non-bank, commercial and international payment services, fxpaynet delivers prompt and secure payments to anywhere in the world. The benefits of this online payment system include free user training, fast implementation, no license fees and best of all, competitive exchange rates. Users can access fxpaynet from anywhere the Internet is used and can place orders for foreign exchange with complete security.

  • Spot rates and forward exchange contracts: There are many types of corporate foreign exchange, depending on the type of payment that is required. Two common types of exchange used to facilitate payment to overseas suppliers are spot rate payments and forward exchange contracts.

  • The spot rate is the current price at which a commodity can be bought or sold at a certain time and place. Bidvest Bank quotes the spot rate for immediate business foreign exchange payments, and the rate will remain valid for two business days.

  • Forward exchange contracts allow corporate clients to exchange amounts of currency on a specified future date or between specified future dates at a pre-agreed exchange rate. This type of contract enables a certain amount of flexibility as delivery dates can be tailored to meet your business’s requirements.

  • Exchange control services: Foreign exchange controls are imposed by the South African Reserve Bank (SARB) on the purchase or sale of foreign and local currency by residents and non-residents. Authorised Dealers work with the SARB in order to administer foreign exchange control to South African residents and non-residents. Bidvest Bank has been appointed an Authorised Dealer by the SARB. Our services include: hedging strategies, import and export payment facilitation, the regulation of Customer Foreign Currency Accounts, Omnibus allowances and a range of related foreign exchange control queries. Read about Bidvest Bank’s foreign exchange control services.

    Get expert corporate foreign exchange with us

    Owing to South Africa’s complex exchange control laws, it’s important to have financial guidance when moving money internationally or when paying foreign vendors. Bidvest Bank’s expert knowledge and understanding of the foreign exchange market has enabled us to create a comprehensive range of products that cater for profitable corporate foreign exchange. Contact us with your queries regarding business foreign exchange.