5.2.32.2 Using the ‘New’ option to fix the exchange rate after the effective start date

You can use the ‘New’ option to fix the exchange rate for the next period. Follow the steps given below to fix the exchange rate using this option:

1. Select New from the menu.
2. Select the reference number of the drawdown for which you want to fix the exchange rate for the next period. The option list displays the reference numbers of drawdowns with effective start date earlier than the current system date. This indicates that you are fixing the exchange rate for the next period. By default, the effective end date of the previous period+1 will become the effective start date of the new period. The system displays the Fixing Date for the next period based on the exchange rate fixing days maintained for the drawdown currency at the tranche level.
3. Change the effective start date, if required. By default, the system displays the current date. You can change it to date in the future such that the date is not beyond the drawdown maturity date. However, if the end date of the previous exchange rate fixing period is greater than the system date, the effective start date of the current period should be greater than the previous period end date.
4. Specify the effective end date for the period. This date should not be greater than the drawdown maturity date but may be equal to the effective start date.
5. Change the default exchange rate, if required. This rate is picked up from the Currency Rates Maintenance screen. You may also capture any remarks, if required.
6. Select Save from the menu to save the changes. Since you are fixing the exchange rate before the actual fixing date, the system will display an override message indicating the date and time when the actual fixing should have taken place, before saving the details. A confirmation message is displayed if the save operation is successful.