Foreign Currency transactions

Solution
Monthly Fee
Key Features
 
The Spot Market
 
  • Ideal for businesses dealing in currencies other than the rand
  • Payment is done at spot (usually within two business days)
  • Rate determined at the point of sale
  • The acceptance of a rate is binding
  • Caters for diverse commercial and financial transactions

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The Forward Market
 
  • You enter into an agreement with us to buy or sell foreign currency at a future date
  • Ideal for businesses that make use of international products and services
  • Ideal for businesses making or receiving international payments
  • You can fix your rate in order to price accordingly
  • You can hedge your exposure against rate fluctuations

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Alternative Hedging
 
  • With our structured solutions you have the right but not the obligation to buy or sell within a given time frame
  • Ideal for companies with hedging policies that allow for more risk appetite
  • Getting possible foreign exchange rates that are better than Foreign Exchange
  • Contracts and Foreign Exchange Spot
  • Protection against currency rate movements
  • Allows some ability to participate in favourable currency movements

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BARX Africa
 

Through BARX Africa you can access:

  • A full suite of foreign exchange products including spot, forwards and swaps
  • Market information vital for informed decision making
  • A live rates ticker
  • Our award-winning research portal, Barclays Live
  • Live intraday charts
  • Sophisticated analytical tools

You also get:

  • Improved control over your foreign exchange trade execution
  • Treasury operations efficiency
  • Full audit trail on all transactions
  • The ability to control individual trading limits
  • Live news feeds
  • Efficiency
  • Easy-to-use with instant deal confirmation

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Trade and Working Capital

PRODUCT
Monthly Fee
Benefits
Key Features
 
Export Documentary Collections
 
  • It’s a simple operation
  • It improves cash flow
  • Customers using an Export Collection where the bill has been guaranteed may request us to discount the bill before due date
  • It is convenient – has no impact on the client’s credit facilities
  • Reduces the risk of losing the title to the goods before receiving payment for goods shipped on a bill of lading (a detailed list/receipt of goods being exported
Export Documentary Collection operates as follows:
  • The exporter sends documents that allow access to the goods being imported (i.e. a bill of lading, certificate of origin, invoice) to their bank, along with a bill of exchange requesting payment according to the agreed terms
  • Payment is normally requested in one of two ways:
  • Immediately on presentation of the collection to the importing customer ('sight payment'), or
  • On an agreed future date ('term payment')
  • In the case of term payments, importing customers will be required to endorse the bill of exchange (ie. sign it, usually on the back) to indicate their acceptance of it before we release to them the documents allowing access to the goods.
  • Our Export Documentary Collections are governed by International Chamber of Commerce rules; this means that aspects such as responsibilities and liabilities are clearly defined and standardised worldwide.
  • If the correspondent bank (collecting bank) has guaranteed payment of the bill of exchange we can discount the bill of exchange without affecting our client’s facilities. This allows them to improve their cash flow by receiving funds earlier than the due date. In this case, our risk is marked against the collecting bank.

 

Import Documentary Collections
 
  • It’s a simple and efficient tool for settling trade debts
  • It improves cash flow for customers who are able to negotiate credit terms
  • Payments of any value may be made in any freely traded currency
  • Payment can be made immediately on presentation of the documents or on an agreed future date.
  • The exporter sends documents that allow access to the goods being imported (i.e. a bill of lading, certificate of origin, invoice, etc.) to their bank, along with a bill of exchange requesting payment according to the agreed terms
  • Payment is normally requested in one of two ways: immediately on presentation of the collection to the importing customer ('sight payment') or on an agreed future date ('term payment')
  • In the case of term payments, importing customers will be required to endorse the bill of exchange (ie. sign it, usually on the back) to indicate their acceptance of it before we release to them the documents allowing access to the goods.
 
Export Documentary Letter of Credit
 
  • The Export Documentary Letter of Credit offers you with a comprehensive range of international trade services to support your overseas trading
  • 'gateways' to a whole range of other international products and services such as foreign exchange products and risk mitigation
  • you can secure a specific payment date
  • Payment is only made to exporters when they present documents that comply exactly with the terms and conditions of the Documentary Letter of Credit
  • The exporter may be able to discount deferred Letter of Credit, thus receiving their payment immediately upon presentation of complying documents
  • No impact on the exporter’s credit facility. Even if we discount the Letter of Credit, the risk will be on the issuing bank
  • Letters of Credit can be issued for any value and in any freely traded currency (subject to appropriate facilities having been marked for the customer)
  • Sight or term payment options
  • Payment can be received immediately on presentation of compliant documents ('sight' payment) or on a fixed or determinable future date ('term' payment)

 

Import Documentary Letter of Credit
 
  • Our Import Documentary Letters of Credit provide you with valuable risk mitigation tools to assist with your international trade transactions.
  • By using an Import Documentary Letter of Credit, you can mitigate the risks of your supplier shipping incorrect or defective goods
  • Import Documentary Letter of Credit are governed by International Chamber of Commerce rules which means responsibilities, liabilities are clearly defined and standardised worldwide
  • We offer a comprehensive range of international trade services which allow you to strengthen relationships with your overseas suppliers
  • Trade services products, such as letters of credit and collections, often act as 'gateways' to a whole range of other international products and services such as foreign exchange products and risk mitigation. Income benefits can be extensive.
  • As an importer you’re assured that if the terms of Letter of Credit are complied with, you’ll receive the correct goods on time
  • Customers can specify the documents against which payment will be made
  • Suppliers receive payment only if they present documents which comply exactly with the terms set out in the letter of credit
  • While a letter of credit cannot guarantee the quality of the goods, it can call for an independent third party to inspect the goods prior to shipment and provide documentation detailing the inspection findings. This is an important advantage when buying from new suppliers
  • We can offer guidance on the documents to ask for, and how to word the terms of a Letter of Credit
  • Our letters of credit are always irrevocable – they cannot be amended or cancelled without the agreement of all the parties
  • The bargaining position of customers is enhanced - customers may be able to negotiate longer credit periods when they provide letters of credit
    They may also be able to reduce their costs by using the benefits to the supplier as a lever in negotiations
  • We can establish the Letter of Credit at sight (enabling beneficiary to get paid upon presentation of complying documents), and refinance the importer for a further period (i.e. allowing him to pay for his imports at a future date and also to sell the goods before he has to pay). This improves our client’s cash flow situation, and also allows him to negotiate better pricing with the exporter
  • Suppliers may also be persuaded to meet some or all of the cost of the letter of credit
    Customers can gain status with their suppliers because banks only issue letters of credit on behalf of customers they consider creditworthy
  • Customers' competitive position may also be enhanced; they may be able to win deals from suppliers who insist on payment by letter of credit
 

Customer Foreign Currency Account

Solution
Monthly Fee
Key Features
 
Electronic Transfer (SWIFT)
 
  • Ideal for businesses dealing in currencies other than the rand.
  • Payment is done at spot (usually within two business days).
  • Rate determined at the point of sale.
  • The acceptance of a rate is binding.
  • Caters for diverse commercial and financial transactions.

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Absa Online for Business     
 
  • You enter into an agreement with us to buy or sell foreign currency at a future date
  • Ideal for businesses that make use of international products and services
  • Ideal for businesses making or receiving international payments
  • You can fix your rate in order to price accordingly
  • You can hedge your exposure against rate fluctuations

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Send and receive money

Solution
Monthly Fee
Key Features
 
Customer Foreign Currency Account
 
  • Ideal for businesses dealing in currencies other than the rand.
  • Payment is done at spot (usually within two business days).
  • Rate determined at the point of sale.
  • The acceptance of a rate is binding.
  • Caters for diverse commercial and financial transactions.

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Travelling abroad

Solution
Monthly Fee
Key Features
 
Foreign Bank notes
 
  • Whenever you travel to another country, it is always a good idea to have some cash available in the currency of the country you are visiting, for that coffee, taxi fare or hotel porter tips.
  • At Absa we can supply you with most of the world’s major currencies before you depart, saving you having to stand in queues at the airport to get the currency of your choice.

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Cash Passport
 
  • You need a valid ID book, a passport and an air-ticket or e-ticket in your name to qualify for a Cash Passport.
  • If you are travelling by car or to countries that are not in the common monetary area, you will need to provide your ID and your vehicle’s registration certificate.
  • If the currency of your Cash Passport differs from the currency of the country you plan to visit, additional service fees will apply.
  • As an alternative to cash passport you can use your Absa Debit or Credit Cards.
  • Lost or stolen cards can be replaced.
  • Additional cards can also be purchased for family members linked to the same pot of funds, for convenience.

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Omnibus travel facilities  
 
  • We may approve applications for Omnibus Travel facilities up to R20 million per calendar year
  • Your application for an omnibus travel facility must be accompanied by an official letter from your company authorising the proposed business visits
  • We keep a schedule of the visits undertaken, the amount of foreign currency allocated and resold
  • For inspection purposes all documentation must be retained for five years
  • The omnibus facility may not be deposited in foreign bank accounts
  • Travel allowance can be provided in the form of Foreign bank notes or Cash passport
  • Applications for omnibus travel facilities over R20 million must be submitted to the Financial Surveillance Department for consideration

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Need More Help?

Call us on:

0860 227 232