Banks Can Now Offer Their Customers More Rate Certainty on Cross-Currency Payments
Cross-currency transactions are an increasingly common and valuable part of business for small and medium-sized enterprises. To help those companies add certainty in the often volatile world of foreign exchange rates, Bank of America Merrill Lynch (BofA Merrill) now offers its financial institution (FI) clients a fully integrated FX risk management program, which includes guaranteed FX rates for up to 180 days for their qualified customers.
Similar to what BofA Merrill already offers its corporate clients, the guaranteed rates program benefits both FIs and their customers by reducing risk, increasing efficiency and smoothing out volatility.
“Our financial institution clients are seeing increased competition from both bank and non-bank providers in providing payments services to businesses,” said David Kretz, head of Global Strategy and Payments for Global Transaction Services (GTS) at BofA Merrill. “We are pleased to add a guaranteed FX rate program for them to pass along to their business customers to use for cross-currency payments.”
Banks who take advantage of the guaranteed FX rate program benefit from:
Through the guaranteed rate program, BofA Merrill offers more than 140 currencies, with 25 of the most common currencies available for guaranteed rates of greater than one day up to 180 days.
“For our FI clients, this program removes much of the risk management challenge of arranging cross-currency payments for their customers,” said Stephanie Wolf, head of Global Financial Institutions, Governments and Business Banking for GTS. “Plus, the burden on their customers of worrying about FX rate volatility impacting their payments is eliminated.”
Bank of America Merrill Lynch products and services are subject to applicable terms and conditions.
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