Spot foreign exchange –
These are transactions with settlement date within two working dates. Such transactions enable clients to easily transact cross-border trade settlements. There are no charges levied for spot transactions. However underlying transaction may have charges levied depending on their nature e.g Telegraphic transfers
Forward foreign exchange Contracts –
These are binding contracts to buy or sell a given amount of currency for delivery at a specific future date. Settlement of this deal is any period after two working days.
Forwards-Imports/Exports
- Export Forwards – Exporters enter into contracts to sell expected export proceeds at a specified future date.
- Import Forwards – Importers enter into contracts to buy invoiced payments at a specified future date.
FX Swap arrangements –
A transaction involving both a spot and a forward leg. It is used by customers who have surplus funds in one currency and would like to use this surplus to fund a shortfall in another. For example, a customer holding Kenya shillings can give the bank these shillings in exchange for US dollars for a specified period of time.
Exchange Bureau Services –
These are over the counter transactions where customers are able to buy and sell foreign currency at competitively priced rates. Customers have access to specifically designed exchange counters. Access to foreign exchange denominated current accounts and/or deposits designed specifically to suit individual client requirements.
