International Business Solutions
Foreign Exchange Risk Management
Protect your business from unpredictable exchange rate movements and reduce the impact of currency fluctuations on your cash flow.
Suncorp Bank offers a range of products and strategies that may help you manage currency risk and improve cash flow stability.
Foreign Exchange Value Tomorrow & Value Spot Transactions
Value Tomorrow and Value Spot transactions allow you to exchange currencies at a fixed rate, with settlement on a future date.
Ideal for international transfers, currency conversions, and foreign exchange orders.
For:
- Importers & exporters: Manage invoice payments quoted in foreign currencies.
- Investors: Convert overseas cash assets or earnings denominated in foreign currencies.
- Businesses & individuals: Pay or receive foreign currency amounts.
- Profit conversions: Convert foreign currency profits into Australian dollars.
- Value Tomorrow: Settlement in one business day.
- Value Spot: Settlement in two business days.
- Fund on settlement: Pay on the settlement date.
- Wide currency range: Available in multiple currencies.
- Fixed exchange rate: Lock in the exchange rate for future cash flows.
- Set custom FX orders: Set Stop Loss, Take Profit, or One Cancels the Other orders.
- No rate adjustments: Once agreed, no benefit from rate movements.
- No cooling-off: No cooling-off period after agreement.
Foreign Exchange Forward Exchange Contracts (FECs)
A Forward Exchange Contract (FEC) allows you to lock in an exchange rate for a future date, providing protection against unfavourable rate movements and ensuring cash flow certainty.
Ideal for managing currency risk, stabilising future cash flows and protecting your business from exchange rate volatility.
For:
- Foreign currency transactions: Protect against adverse exchange rate movements.
- Importers & exporters: Manage future foreign currency invoice payments.
- Investors: Lock in a future exchange rate for overseas assets.
- Cash flow protection: Safeguard against unfavourable currency fluctuations.
- Flexible settlement: Settle in more than two business days (up to 2 years).
- Fixed exchange rate: Lock in a known rate for the future.
- Tailored terms: Customise the value date and contract amount to suit your needs.
- Cash flow certainty: Secure predictable cash flows for foreign currency contracts.
- Flexible options: Choose your settlement period and pre-deliver part or all the FEC.
- Multiple contracts: Structure a series of FECs with the same fixed rate.
- No rate adjustments: Once agreed, no benefit from rate movements.
- No cooling-off: No cooling-off period after agreement.
- Obligation to transact: You must complete the transaction at maturity; cancellation may incur costs or benefits.
Foreign Exchange Swaps (FX Swaps)
FX Swaps allow you to exchange currencies at a fixed rate on a specific date, and then re-exchange them later at an agreed rate.
Ideal for managing currency risk and hedging against exchange rate fluctuations, it may help you protect your business from market volatility.
For:
- Foreign currency obligations: Protect against adverse exchange rate movements.
- Importers & exporters: Manage future foreign currency invoice payments.
- Cash flow management: Secure cash flow now for future currency transactions.
- Investors: Lock in a future exchange rate for overseas assets.
- Cash flow certainty: Secure predictable cash flows for foreign currency contracts.
- No rate adjustments: Once agreed, no benefit from rate movements.
- No cooling-off: No cooling-off period after agreement.
- Obligation to transact: You must complete the transaction at maturity; cancellation may incur costs or benefits.
Foreign Currency Options (FX Options) *
FX Options give you the right (but not the obligation) to exchange currencies at a fixed rate on a future settlement date.
Ideal for businesses seeking protection against currency fluctuations, FX Options also provide the flexibility to benefit from favourable exchange rate movements by transacting at the prevailing spot rate.
For:
- *Wholesale Only: only available to customers who meet the definition of wholesale client under section 761G or sophisticated investor under section 761GA of the Corporations Act 2001 (Cth), based on their financial status or professional experience.
- Importers: Protect against future foreign currency payments.
- Exporters: Hedge against foreign currency receipts.
- Currency risk protection: Ideal for businesses uncertain about future exchange rate movements.
- Benefit from favourable movements: Potential to gain from favourable foreign exchange rate changes.
- Protection against losses: Hedge against unfavourable changes in currency values.
- Flexibility: Manage currency risk with the option to adapt if your circumstances change.
- Cash flow planning: Set and budget for future cash flows.
- Cost consideration: May be more expensive than buying at the prevailing spot rate.
- Premium payable: A premium is required to secure the option.
Fees
Telegraphic Transfer
|
Product |
Issued |
Recall |
Amend |
Trace |
|
|
each |
each |
each |
each |
|
Value Tomorrow & Value Spot |
$30.00 |
$30.00 |
$30.00 |
$30.00 |
|
FX Swap |
$30.00 |
$30.00 |
$30.00 |
$30.00 |
|
Forward Exchange Contracts |
$30.00 |
$30.00 |
$30.00 |
$30.00 |
|
Foreign Currency |
$30.00 |
$30.00 |
$30.00 |
$30.00 |
Other
|
Product |
Confirmation Reprint |
Transfers to other institutions (EFT) |
Request for Audit Certificate |
Record search/copy fee |
Interest Certificate (Previous Financial Years) |
|
|
each |
each |
per certificate |
each |
per certificate |
|
Value Tomorrow & Value Spot |
$3.00 |
$0.00 |
$30.00 |
$70.00 |
n/a |
|
FX Swap |
$3.00 |
$0.00 |
$30.00 |
$70.00 |
n/a |
|
Forward Exchange Contracts |
$3.00 |
$0.00 |
$30.00 |
$70.00 |
n/a |
|
Foreign Currency |
n/a |
n/a |
n/a |
n/a |
n/a |
# Costs and fees for Foreign Currency Options are reflected in the premium; if exercised, standard fees for the resulting FX transaction (e.g., Value Spot, Forward Exchange Contract, or FX Swap) may apply.
Check Eligibility
- You are an Australian resident.
- You are an adult individual customer.
- You have a business registered in Australia that can meet the bank’s credit requirements.
- You can provide two consecutive years of financial information.
- You have security such as cash, residential, commercial or rural property, business assets, or a combination of these.
- * FX Options are available to clients who are not retail clients, as defined under the Corporations Act 2001 (Cth). This includes clients who qualify as wholesale clients under section 761G, or who are assessed as sophisticated investors under section 761GA.
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Home Loan, Personal and Business Banking products are issued by Suncorp Bank (Norfina Limited ABN 66 010 831 722 AFSL No 229882 Australian Credit Licence 229882) to approved applicants only. Eligibility criteria, conditions, fees, and charges apply and are available on request. Please read the relevant Product Information Document and terms and conditions before deciding whether to acquire a product.
Foreign currency facilities are subject to exchange rate fluctuations, which may increase costs or result in losses. Suncorp Bank offers products designed to help manage the financial risks associated with exchange rate movements. Suncorp Bank recommends that customers seek independent financial advice in respect to the risks associated with foreign currency exposure and the suitability of financial products available to help minimise that risk.
Foreign Exchange Products are issued by Suncorp Bank (Norfina Limited) ABN 66 010 831 722 AFSL No 229882. Any advice has been prepared without considering your personal objectives, needs, or financial situation and prior to making any financial decisions, you should consider the relevant product disclosure documentation to decide whether the product is appropriate for you. Please read the relevant Product Disclosure Statement or Product Information Document, the Financial Services Guide, and our Treasury terms and conditions before you make any decisions regarding any of these products. Contact us for a copy of these documents related to Foreign Exchange Products.
