Extension Follows Growth In Cross-Border Payments
FinTech BizNews Service
Mumbai, 21 October 2024 – Bank of America is simplifying the management of foreign exchange (FX) risk associated with cross-currency payments and receipts with the introduction of Guaranteed FX Rates of up to 1-year[1], the longest tenor available in the industry today. Using this strategic solution can help companies mitigate exposure to currency fluctuations and simplify treasury management processes such as forecasting and reconciliation.
“When FX risk is managed appropriately and efficiently, it can bring enormous value to companies that process large volumes of cross-border payments,” said Bhupen Velani, head of Transactional FX Trading in Global Markets at Bank of America. “As our clients’ business models have evolved, these volumes have increased, and so too has the appeal to lock in FX rates with longer tenors.”
In recent years, the volume and value of cross-border payments has continued to dramatically increase with much of the volume generated by businesses in the e-commerce, services, manufacturing and “gig” industries (companies and individuals engaging in short-term, project-based work). The growth is also being spurred on by innovations in technology.
This year marks the 8th year since BofA launched Guaranteed FX Rates beyond a 24-hour tenor. Key developments of the solution since then include:
“For corporate treasurers, volatile FX markets exacerbate the challenge of cash flow forecasting,” said Daniel Stanton, head of Transactional FX in Global Payments Solutions at Bank of America. “Securing guaranteed FX rates of longer tenors can help them improve forecasting, which will lead to better informed decision-making.”
Bank of America clients can access Guaranteed FX Rates through the CashPro® platform and via Swift with no additional technology changes required.
World’s Best Bank for FX Payments
Last month, Euromoney magazine recognized Bank of America’s leadership in foreign exchange by naming it the World’s Best Bank for FX Payments. The publication noted Bank of America’s transactional FX business has “quickly risen to become one of the top three global players,” reflecting “the bank’s strategic vision, innovative products and global reach, enabling it to secure a strong market position and stand out in the competitive FX industry.”
