5.2.3.11 Specifying Revaluation Preferences

If Reval Reqd is Yes for the drawdown product, the same defaults to the drawdown processed with the product. You can, however, change the preferences for a specific drawdown. But, if Reval Reqd is No for the product, you cannot change it to Yes at the drawdown level and revaluation is not applicable for such drawdowns. The following preferences become mandatory if revaluation is applicable:

• Exchange Rate Code

  This indicates the code for the exchange rate that must be used to convert the drawdown amount from the drawdown currency to its equivalent in the tranche currency. The option list displays the rates codes maintained for the currency pair (tranche and drawdown currencies) involved in the conversion. During revaluation, system picks up the exchange rate maintained for the selected rate code and rate type corresponding to the currency pair.

• Exchange Rate Type
  This refers to the type of exchange rate that must be used to convert the drawdown amount from the drawdown currency to the tranche currency. The available options are:

  • Buy
  • Mid
  • Sell
• Frequency
  This is the frequency or periodicity at which automatic revaluation should be performed. The options available are:

  • Daily
  • Monthly
  • Half-Yearly
  • Quarterly
  • Yearly
• Start Month and Start Day

  For the frequency selected, you must also specify the month and the date according to which the system commences the revaluation process.