Payments

Bank of America introduces Guaranteed FX Rates for cross-currency payments

Photo: Adobe Stock

November 6, 2024

Bank of America introduced Guaranteed Foreign-Exchange Rates of up to one year for cross-currency payments. With this tool, businesses can mitigate currency fluctuations and improve treasury management processes, according to a press release.

"When FX risk is managed appropriately and efficiently, it can bring enormous value to companies that process large volumes of cross-border payments," Bhupen Velani, head of transactional FX trading in global markets at Bank of America, said in the release. "As our clients' business models have evolved, these volumes have increased, and so too has the appeal to lock in FX rates with longer tenors."

The bank first launched Guaranteed FX Rates eight years ago and has added more than 200 currency pairings over time, with the one-year tenor available in 37 currency pairs currently.

"For corporate treasurers, volatile FX markets exacerbate the challenge of cash flow forecasting," Daniel Stanton, head of transactional FX in global payments solutions at Bank of America, said in the release. "Securing guaranteed FX rates of longer tenors can help them improve forecasting, which will lead to better informed decision-making."