Bank of America revealed on Monday that it has introduced guaranteed foreign exchange (FX) rates for up to one year, the longest tenor available in the industry.
Bank of America Extends Guaranteed FX Rates to One Year
The strategic solution is said to be aimed at helping companies manage currency fluctuations and simplify treasury management processes.
The extension of guaranteed FX rates follows a significant increase in cross-border payments, driven by growth in industries like e-commerce, services, manufacturing, and the gig economy.
BofA explained that in recent years, the volume and value of cross-border payments has dramatically increased. The growth is also said to be spurred on by technological innovations.
“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,” stated Bhupen Velani, head of Transactional FX Trading in Global Markets at Bank of America.
Bank of America’s guaranteed FX rates now support over 200 currency pairings across multiple tenors, with the one-year tenor available in 37 currency pairs.
“Securing guaranteed FX rates of longer tenors can help them improve forecasting, which will lead to better informed decision-making,” said Daniel Stanton, head of Transactional FX in Global Payments Solutions at Bank of America.
Bank of America said its clients can access guaranteed FX rates through the CashPro platform and via Swift. Last month, the bank was recognized as the World’s Best Bank for FX Payments by Euromoney magazine.
