17.2 Business Use Case Indicating the Requirement of two Exchange Rates Tables

All the balance sheet computations are done based on the average price or the closing price. For illustration, assume that a bank has branches in multiple countries and therefore, multiple exchange rates scenarios exist. Then the bank must decide to choose the closing price of exchange rate.

Therefore, the bank computes the balance sheet based on the entity in each country. Assume that the Bank is operative in four different countries. If the legal entity is based on country A, then A category of prices is used for balance sheet computation, and if the legal entity is based on country B, then B category of prices is used, and C category of prices based on country C, and D category of prices based on country D.

To achieve this, for a single day, bank captures multiple exchange rates because of different countries. For CurrencyA to CurrencyB, the bank must capture three pairs of exchange rates. OFSDF handles this type of scenario using the Rate Data Source Code, which is based on the data source. The bank chooses the time zone. The bank creates different data sources such as country AB, country AC, and country AD. Mapping exists from Legal Entity to each data source. If the Legal Entity is of country B, then the bank uses AB as the data source and all the prices of data source AB is used to compute all the transactions. This is the business use case that resulted in the requirement of two Exchange Rates tables in OFSDF.

The existing Stage Exchange Rates table cannot be modified due to the presence of the PK column. The existing customers also do not need two Stage Exchange Rates tables.