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Treasury & Foreign Exchange Services

Bank of China offers different kinds of treasury services and foreign exchange products for our corporate customers. Most commonly used products are – amongst others - foreign exchange spot transaction and foreign exchange forward transaction. Bank of China (Luxembourg) S.A. Athens Branch will rely on the business strength of its parent bank, Bank of China (Luxembourg) S.A.to provide corporate clients with a variety of Treasury & Foreign Exchange products.

Foreign Exchange Spot Transaction

Definition

Foreign Exchange Spot Transaction refers to the foreign exchange transaction settled on the second bank working day after the foreign exchange transaction has been concluded. The settlement day is the value date. The value date will be postponed if it falls out of the bank working day or during the holidays.

Functions

Foreign Exchange Spot Transaction is the most essential form in foreign exchange dealings. It has the following main functions:

1.Foreign Exchange Spot Transaction can meet the needs of the customer to make temporary payment. Through Foreign Exchange Spot Transaction, the customer can convert one foreign currency into another duly to deal with the foreign exchange settlement in individual funds management, such as allowance or maintenance and it's also utilized in import and export business, tendering and overseas project contracting, etc., or in paying back foreign exchange loans.

2.Foreign Exchange Spot Transaction can help rationalize the composition of the customer's foreign currencies on hand. Through Foreign Exchange Spot Transaction, foreign exchange risks can be mitigated.

Foreign Exchange Forward Transaction

Definition

Definition Foreign Exchange Forward Transaction refers to the transaction of foreign exchange settled on the agreed date (a date after the second working day upon the conclusion of transaction) and as per the agreed exchange rate by both parties. A Foreign Exchange Forward Transaction can usually last for one year. A transaction in excess of one year is called as a super-forward transaction of foreign exchange.

Functions

Foreign Exchange Forward Transaction is a commonly-used method to mitigate the foreign exchange risks and fix foreign exchange costs. Generally speaking, the foreign currency-denominated transactions, such as settlement in foreign trade, investment abroad, application for foreign exchange loans or paying back the loans in foreign currencies, are all involved value maintenance of foreign exchanges. By doing Foreign Exchange Forward Transaction, the customer can fix in advance the foreign exchange costs, either paying or receiving in foreign currency, in order to achieve the goal of maintaining the value and can further enable the enterprise to focus the resources on its own operation.

For more information click here.(https://www.boc.cn/lu/en/fimarkets/)

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