1 / 10

Foreign Currency Accounts

Foreign Currency Accounts Foreign Currency Accounts When should one be opened Where should one be opened Advantages /disadvantages of opening Evaluate costs of maintenance Foreign Currency Accounts (FCYacs) When Short answer is….. When the volume or value of business warrants it.

ostinmannual
Download Presentation

Foreign Currency Accounts

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Foreign Currency Accounts

  2. Foreign Currency Accounts • When should one be opened • Where should one be opened • Advantages /disadvantages of opening • Evaluate costs of maintenance

  3. Foreign Currency Accounts (FCYacs)When • Short answer is….. When the volume or value of business warrants it. - company exporting goods to Thailand, 20 sales a year of GBP equivalent 20,000 each, local sales office and also imports raw materials from Thailand. Would you open an account?

  4. FCY acswhere to hold accounts Three choices - in your domestic locality, staying at home - in the country of the currency, going native - in a third location (Treasury Centre)

  5. FCY acsWhere • Banking relations • Transfers between local currency and foreign currency • Cut-off times • Cheque deposits • Receipt of credit transfers from customers in country of currency

  6. FCY acsWhere • Balance reporting and statements • Interest on credit balances • Problem resolution • Language • Tax and permanent establishment • Delivering payment instructions to bank • Commissions and fees

  7. FCY acscost/benefit • What costs or charges do we incur with a FCYac? • What costs or charges do we incur without a FCYac?

  8. FCY acsCosts • Value dating • Commission charges • Transaction charges - per item - based on value i.e. 2 per mille with a max and min • Turnover charges

  9. FCYacs Costs • Lifting fees • Account maintenance fee • Cable or telex charges • Correspondent charges • Period end billing

  10. FCY acsOther Issues • Multicurrency accounts • Interest on bank accounts • Withholding taxes • Stamp duties on loans • Notional pooling and concentration • Thin capitalisation • Central bank reporting (x border flows)

More Related