Absa | Makes Business foreign currency transactions more effective

Our Customer Foreign Currency Account (CFC Account) is available in all major currencies. Ideal for companies in the import and export business.

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Convert funds

Convert funds to a preferred currency when needed and reduce conversion fees.

Manage forex risk

Effective way to manage rate fluctuations.

Business Integrator International

Make cross-border payments easily and securely.

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Benefits
Effectively manage exchange rate risks.

Convert funds to a preferred currency when needed and reduce conversion fees.

24-hour online electronic channels to manage CFC Accounts.

Earn credit interest on foreign currency deposits.

Option to earn higher yields by investing in a Term Deposit Account.
Features
Manage foreign currency payments and receipts using only one account.

Available in all major currencies Download list.

CFC Account holders can apply for an overdraft.
Who can apply
Importers and exporters of goods

Locally recognised ships’ agents

Freight forwarders

Marine insurance brokers

South African entities that provide services to non-residents

Merchanting traders, insurance brokers, stockbrokers and tour operators

Insurance companies utilising the account for foreign currency working balances

If you do not fall within the above list, our Exchange Control Specialists can assist to submit an application on your behalf to the South African Reserve Bank to open a CFC account.
South African Reserve Bank (SARB) regulations
The types of transactions that may be processed over CFC Accounts are subject to the South African Reserve Bank exchange control requirements.

Details of the exchange control requirements that must be complied with are published on the South African Reserve Bank’s website.

Contact our International Banking Specialists for more information.

Frequently Asked Questions

What can an International Banking specialist help me with?

How do I contact the specialists?

What can an International Banking specialist help me with?
They can assist you with:

Electronic platforms

Advice on exchange control rulings and regulations

How to mitigate risk on international payments

How to hedge your exchange rate risk

Which currency and card options are available when traveling abroad
How do I contact the specialists?

Contact your Relationship Banker who will link you to an IB Specialist. If you’re not an Absa client email us at InternationalBankingServices@absa.co.za

Forex

How many types of FECs are there?

What are the different types of FECs?

In how many days does a spot transaction settle?

What is the difference between buying and selling?

On what days am I able to settle a transaction?

How do I find out more?

What does FEC stand for?

Forward Exchange Contract.
How many types of FECs are there?
There are three types of FECs:

Vanilla FEC

Fully Optional FEC

Partially Optional FEC
What are the different types of FECs?
Fixed Contract: Delivery of the currency must take place on the predetermined, fixed maturity (delivery) date specified in the contract.

Partially Optional Contract: The contract is fixed during the first period (from the date of establishment to the option start date). Delivery of the currency may take place at any time between the option start date and the maturity (delivery) date specified in the contract.

Fully Optional Contract: Delivery of the currency may take place at any time on or before the final maturity date of the contract.
What is a spot transaction?

A transaction where one currency is exchanged for another and the flow of funds usually settles in two business days from the day of the trade.
In how many days does a spot transaction settle?

In two days. However, same-day or next-day value is possible depending on cut-off times.
What is the difference between buying and selling?

Buying: Client rate will be higher than the interbank rate.

Selling: Client rate will be lower than the interbank rate.
On what days am I able to settle a transaction?

On South African business days except for those which fall on a US dollar holiday.
How do I find out more?

Contact your Relationship Executive who will link you to an IB Specialist. If you’re not an Absa client email us at InternationalBankingServices@absa.co.za

International payments

Who qualifies to make international payments?

How can I make or receive international payments?

How do I find out which channel suits my needs?

How many types of FECs are there?

What is required to make or receive an international payment?

How do I find out more?

Who qualifies to make international payments?

Any client who needs to make a cross-border payment or who receives a foreign payment from abroad.
How can I make or receive international payments?

There are various channels available to suite customer’s unique needs.
How do I find out which channel suits my needs?

Speak to an IB Specialist.
How many types of FECs are there?

International payments are governed by exchange control regulations. Speak to an IB Specialist who will be able to guide you.
What is required to make or receive an international payment?

International payments are governed by exchange control regulations. Speak to an IB Specialist who will be able to guide you.
How do I find out more?

Contact your Relationship Executive who will link you to an IB Specialist. If you’re not an Absa client email us at InternationalBankingServices@absa.co.za

International travel

What should I take with me when I travel overseas?

What currencies are available?

How do I find out more?

What should I take with me when I travel overseas?

A Multi-Currency Cash Passport is a safe method to use. However, you should take some cash for tips and taxi fare.
What currencies are available?

We have 22 currencies in foreign notes and up to four currencies on the Cash Passport (US Dollar, Pound, Euro and Australian Dollar).
How do I find out more?

Calls us on 0860151151

International trade

Who qualifies for international trade products?

How do I find out more?

Who qualifies for international trade products?
Clients who wish to secure foreign contracts or services with a guarantee.

Clients who want an alternative payment method that can help eliminate payment risk.
How do I find out more?
Contact your Relationship Executive who will link you to an IB Specialist. If you’re not an Absa client email us at InternationalBankingServices@absa.co.za

In order for us to ascertain which trade services you’re looking for, you'll need to answer the following questions:

Which countries and counterparties do you do trade with?

How long have you been exporting and/or importing?

Do you have a company policy around mitigation of trade and/or foreign exchange risks?

How do you currently settle your international trade transactions?

Can you give us an indication of the volume and value of your international trade transactions over the past year?

What settlement terms are you currently using – is payment immediate, or at a deferred date?

Do you experience seasonal variances in your trade cycle? Provide details.

What, in your opinion, are the biggest risks you face when trading internationally?

What do you perceive to be the biggest obstacles you face when dealing with international trade transactions?

Customer Foreign Currency Accounts

Who qualifies to open a CFC Account?

What do you need to open a CFC Account?

How do I access my CFC Account?

Are there particular types of transactions that are allowed to be credited to a CFC Account?

If foreign currency funds are received and settled into my CFC Account, how long may the funds remain in my account?

For Forward Exchange Contracts or Spot transactions, if the proceeds are credited into a CFC Account, how long may the funds remain in the account?

How do I find out more?

Who qualifies to open a CFC Account?
Importers and exporters

Freight forwarders

Middlemen in the import/export trade

Tour operators

Consulting services
What do you need to open a CFC Account?
Complete an application form or an International Banking Client Profile form.

Note: opening a CFC Account is subject to exchange control regulations.
How do I access my CFC Account?

Via various channels. Speak to an IB Specialist to find out more.
Are there particular types of transactions that are allowed to be credited to a CFC Account?

Yes, the South African Reserve Bank regulations prohibit the credit of certain types of inward accruals to a CFC Account, for example, an inward loan funding from a non-resident.
If foreign currency funds are received and settled into my CFC Account, how long may the funds remain in my account?

The funds may be kept in the account indefinitely except for Forward Exchange Contracts and Spot transaction proceeds.
For Forward Exchange Contracts or Spot transactions, if the proceeds are credited into a CFC Account, how long may the funds remain in the account?

The credit of Spot or Forward Exchange Contract proceeds to a CFC Account is governed by the South African Reserve Bank and may only be retained in the account for 30 days. Thereafter funds must be converted to ZAR.
How do I find out more?

Contact your Relationship Executive who will link you to an IB Specialist. If you’re not an Absa client email us at InternationalBankingServices@absa.co.za

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