1.10 Currency Exchange Rate

This topic describes the information to configure a Currency Exchange Rate.

The user can maintain exchange rates for a currency pair, the rates at which the user buy and sell one currency for another. A bank determines its buy and sell rate for a currency pair by applying a spread (that is, its profit margin) to the mid-rate of the currency pair. Mid-rate is the basic rate at which a currency pair is exchanged.

The spread applied for a currency pair varies with the transaction type, while the mid-rate usually remains constant. Consequently, different rates are applicable to different transaction types. For instance dollars in currency are purchased at a certain rate, while USD traveler’s checks are bought at a different rate. The user can define a rate type which you would like to associate with a transaction type. For example: CASH, TRAVCHKS, and so on.

The user can define the mid-rate, buy, and sell spread applicable to each rate type; the buy and sell exchange rates are computed by the system. Buy rates and sell rates can either be maintained by individual branches or can be input by the HO and propagated to all the branches.

If the branch for which the rate is being uploaded or maintained is the head office branch, then the rate would be copied to all those branches that have the same country code as the head office branch.

If the branch for which the rate is being uploaded or maintained is not the head office branch, but it has the same country code as the head office branch, then the rate being uploaded or maintained would be specific to the branch and would not be copied to any other branch.

If the branch for which the rate is being uploaded or maintained is not the head office branch and also does not have the same country code as the head office branch, then the rate being maintained would be copied to all the branches that has the same country code linked as the branch for which the rate is being maintained or uploaded.

This topic contains the following subtopics:

• Create Currency Exchange Rate
  This topic describes the systematic instructions to configure a currency exchange rate.
• View Currency Exchange Rate
  This topic describes the systematic instructions to view the list of configured currency exchange rates.