The Financial solutions with a wide choice of foreign currencies from Bank Ganesha

A Foreign Exchange (FX) transaction is an activity of exchanging 2 (two) currencies with the exchange rate and delivery date determined when the transaction is carried out. FX transactions definitely have elements of 2 (two) currencies, where 1 (one) currency will be purchased and 1 (one) other currency will be sold. When put together, both are usually referred to as a currency pair. For example, if an FX player wants to make a USD transaction against IDR, then the currency pair is USD/IDR with USD as the reference currency and IDR as the counter currency.

Types of FX transactions :

Today (FX Tod)
The seller and The buyer agree to complete the transaction on the same day as the transaction date.
Tomorrow (FX Tom)
The seller and The buyer agree to complete the transaction one working day after the transaction date.
Spot (FX Spot)
The seller and The buyer agree to complete the transaction two working days after the transaction date.
Forward (FX Forward)
FX transactions of one currency against another currency, where the delivery of the currency is carried out more than 2 (two) working days after the transaction date at the exchange rate that has been determined and agreed upon when the transaction is carried out.
Swap (FX Swap)
Two transactions, buying and selling or vice versa of one currency against another currency, which are carried out simultaneously for two different time periods at the two exchange rates determined at the time of the transaction.

Benefits of FX Transactions at Bank Ganesha

Bank Ganesha provides a variety of currencies.
Can be used as a hedging tool.

How to Make Foreign Exchange Transactions

Submit an application by coming to the nearest Bank Ganesha Branch Office and must attach several required documents.
Customers can obtain exchange rate information from the Bank Ganesha website and make transactions by coming or contacting the nearest branch or via number (021) 29109900.

Terms and conditions:

For individual customers (residence and nonresident), Bank has: FX Tod, FX Tom and FX Spot. For Non individual customers (companies) can carry out all FX transactions.
There is no minimum or maximum nominal amount to be able to make FX transactions with the Bank, however, to get a special rate, the minimum transaction is equivalent to $5,000.00
Available currencies: USD, EUR, SGD, AUD and JPY.
Requirements :
- Open an account in Bank Ganesha
- Propose an FX Line Facility (specifically for FX Tom, FX Spot, FX Forward and FX Swap) to the Bank by signing an agreement and submit other required legal documents
FX transactions involving Rupiah must comply with Bank Indonesia regulations regarding Foreign Exchange Transactions against Rupiah between Banks and Domestic Parties and Foreign Parties and all amendments thereto.

^{*The Bank has the authority to provide or not provide this facility and/or product to the Customer in accordance with the Bank's policy.}

Risks :

Credit Risk
Customers are exposed to credit risk if the Bank does not fulfill its obligations.
Liquidity Risk
Occurs when customers cannot convert one currency into another currency without sacrificing profits due to a lack of market players or inefficient market conditions.
Market Risk
Occurs due to fluctuations in market variables, including: interest rates and exchange rates that move in a direction that is unfavorable to the Customer.
There are no fees charged to the Customer for the FX Transactions. unless the Customer cancel the transaction which has the potential to incur costs in the form of exchange rate differences.

Illustration 1

September 20^th, 2023, Customer calls the Bank, asking the exchange rate of USD/IDR

VALUE RATE

BUY RATE

SELL RATE

USD/IDR TOD

13.300

13.350

USD/IDR TOM

13.310

13.360

USD/IDR SPOT

13.330

13.380

Customer : What is the today rate if I want to buy USD against IDR?
Bank : 13.350 (Customer is buying USD and selling IDR on September 20^th, 2023)
Customer : What is the tomorrow rate if I want to sell USD against IDR?
Bank : 13.310 (Customer is selling USD and buying IDR on September 21^th, 2023)
Customer : What is the spot rate if I want to sell USD against IDR?
Bank : 13.330 (Customer is selling USD and buying IDR on September 22^th, 2023)
Customer requests to cancel the bought (value today) transaction at the exchange rate 13.350 (see the TOD rate in the table above) amounting USD 50.000 for certain reason. What are the consequences?
Bank : Customer should be charged the USD/IDR exchange rate differences in the effect at the time cancellation occurs.

Referring to the TOD exchange rate table above, customers are required to pay a fine of (13.350-13.300) x USD 50.000 = IDR 2.500.000,-

Illustration 2

Customer has a payment bill in USD that is due in 3 months. The USD currency is expected to strengthen in the future. The FX Forward Contract allows the Customer to buy USD at a rate agreed with the Bank for delivery in the future. So, customers can buy USD/IDR FX Forward with a maturity of 3 months to protect themselves from increases in the value of the USD currency.

The FX Forward rate is determined by the Spot value and maturity tenor. For example:

TENOR

RAET USD/IDR

Spot (T)

13.500

1 month (T + 30 days)

13.535

3 month (T + 60 days)

13.615

6 month (T + 180 days)

13.735

If the Customer has made a transaction to buy an FX Forward USD/IDR with a tenor of 3 months at an exchange rate of 13,615, then when the FX Forward contract matures the Customer will buy USD/IDR at an exchange rate of 13,615 (even though the USD/IDR exchange rate at that time is above or below 13,615).

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