5.2.13 Fixing Exchange Rate for Drawdown Currency

You will need to fix the exchange rate for drawdowns only if the drawdown currency is different from the tranche currency. The exchange rate fixing days refers to the number of business days before the value date of the drawdown or the new rate fix period. Exchange rate fixing for the new drawdown or the new rate fix period is done on this day.

You can fix the exchange rate for the drawdown currency in Exchange Rate Fixing screen.

Specify the User ID and Password, login to Homepage.

From the Homepage, navigate to Drawdown Contract Detail screen.

1. From the Drawdown Contract Detail screen, click Exrate Fixing.
   The Exchange Rate Fixing screen is displayed.

   Figure 5-16 Exchange Rate Fixing

   
   

   
   Description of "Figure 5-16 Exchange Rate Fixing"

   
   
2. The system arrives at the exchange rate fixing date for the drawdown currency based on the exchange rate fixing days maintained at the tranche level and the holiday validation currencies specified for the drawdown currency.
   For more details, refer the heading Specifying currency details for the tranche in this chapter.

   You can specify the following details in this screen:

   • Effective End Date

     You have to specify an end date for the new rate to be effective in the system. The start date will be equal to the drawdown date. You have to capture the date in DD-MMM-YYYY format.

   • Exchange Rate

     The default exchange rate is displayed here. The system picks up this rate from the Currency Rates Maintenance screen. You can change the rate, if required. You can enter upto 15 decimal points.

   • Remarks

     You can also capture additional information, if required. This is used only for information purposes.

   Note:

   It is not mandatory for you to fix the exchange rate before you fix the interest rate.
   This topic contains following sub-topics:

• Saving the New Exchange Rate