Extension Follows Growth In Cross-Border
Payments
Company Named World's Best Bank for FX
Payments
NEW
YORK and SINGAPORE and
LONDON, Oct. 20,
2024 /PRNewswire/ -- Bank of America is simplifying
the management of foreign exchange (FX) risk associated with
cross-currency payments and receipts with the introduction of
Guaranteed FX Rates of up to 1-year1, the longest tenor
available in the industry today. Using this strategic
solution can help companies mitigate exposure to currency
fluctuations and simplify treasury management processes such as
forecasting and reconciliation.
"When FX risk is managed appropriately and efficiently, it
can bring enormous value to companies that process large volumes of
cross-border payments," said Bhupen
Velani, head of Transactional FX Trading in Global Markets
at Bank of America. "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."
In recent years, the volume and value of cross-border payments
has continued to dramatically increase with much of the volume
generated by businesses in the e-commerce, services, manufacturing
and "gig" industries (companies and individuals engaging in
short-term, project-based work). The growth is also being spurred
on by innovations in technology.
This year marks the 8th year since BofA launched Guaranteed FX
Rates beyond a 24-hour tenor. Key developments of the solution
since then include:
- Guaranteed FX Rates today supports over 200 currency pairings
across multiple tenors.
- Currencies eligible for Guaranteed FX Rates have increased
steadily based on client demand.
- The 1-year tenor is available in 37 currency pairs.
- Currency pairs with the most notable volumes include USDMXN,
EURUSD, USDCAD, GBPUSD, EURCZK, AUDUSD.
- Clients who went live with Guaranteed FX rates in 2024 account
for over 20% of year-to-date volume growth.
"For corporate treasurers, volatile FX markets exacerbate the
challenge of cash flow forecasting," said Daniel Stanton, head of Transactional FX in
Global Payments Solutions at Bank of America. "Securing
guaranteed FX rates of longer tenors can help them improve
forecasting, which will lead to better informed
decision-making."
Bank of America clients can access Guaranteed FX Rates through
the CashPro® platform and via Swift with no additional
technology changes required.
World's Best Bank for FX Payments
Last month,
Euromoney magazine recognized Bank of America's leadership in
foreign exchange by naming it the World's Best Bank for FX
Payments. The publication noted Bank of America's transactional FX
business has "quickly risen to become one of the top three global
players," reflecting "the bank's strategic vision, innovative
products and global reach, enabling it to secure a strong market
position and stand out in the competitive FX industry."
About CashPro
CashPro is Bank of America's
award-winning digital banking platform accessed by over 550,000
users at 40,000 companies to manage and monitor their payments,
deposits, loans, and trade finance transactions.
Bank of America
Bank of America is one of the world's
leading financial institutions, serving individual consumers, small
and middle-market businesses and large corporations with a full
range of banking, investing, asset management and other financial
and risk management products and services. The company provides
unmatched convenience in the United
States, serving approximately 69 million consumer and small
business clients with approximately 3,700 retail financial centers,
approximately 15,000 ATMs (automated teller machines) and
award-winning digital banking with approximately 58 million
verified digital users. Bank of America is a global leader in
wealth management, corporate and investment banking and trading
across a broad range of asset classes, serving corporations,
governments, institutions and individuals around the world. Bank of
America offers industry-leading support to approximately 4 million
small business households through a suite of innovative,
easy-to-use online products and services. The company serves
clients through operations across the
United States, its territories and more than 35 countries.
Bank of America Corporation stock is listed on the New York Stock
Exchange (NYSE: BAC).
For more Bank of America news, including dividend announcements
and other important information, visit the Bank of America newsroom
and register for news email alerts.
Reporters may contact:
Louise
Hennessy, Bank of America
Phone: 1.646.858.6471
louise.hennessy@bofa.com
Sheryl Lee, Bank of
America
Phone: 1.657.234.9950
sheryl.lee2@bofa.com
1 Length of one year is subject to Bank of America
TFX Trading approval.
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SOURCE Bank of America Corporation