FX Solutions

Minimise risks and maximise returns from international trading.

Minimise risks and maximise returns from international trading

There are new risks in doing business internationally. But Citibank helps you feel secure by providing you with FX experts specifically for your needs. With expertise and experience in a global business, you will get the most out of your transactions.

FX Transaction
Same Day FX Transaction
Definition FX transaction in which the value date is on the same date as the trade date
Benefit for Customer Certainty in exchange rate and cash flow amount
Risk for Customer
  • Deals might not be executed if Citibank, N.A. (the “Bank”) receives the customer’s instruction past cut off time
  • Possible miscommunication with the Bank on deal side, FX rate, amount or maturity date
  • Market rate after the time of trade might be more favorable than the agreed rate
Documentation Required
  • Letter of Authorization or similar document to appoint authorized dealers to act on behalf of the customer
  • Letter of Indemnity for Foreign Currency Transaction against Rupiah
  • Transactional Statement Letter and Underlying Document (as required by Bank Indonesia (“BI”) Regulation concerning Foreign Currency Transaction against Rupiah between Banks and Domestic or Foreign Party)
  • Other documents as the Bank may require from time to time
Procedure for Customer
  • Complete the documentation required
  • Make sure adequate fund is available in the customer’s account with the Bank
  • Contact the Bank’s Treasury Corporate Sales and Structuring Desk to book deal, or, if applicable, book directly through the Bank’s online trading platform
  • Send settlement instruction within cut-off time to the Bank’s Operation department
Fees/Cost None
Simulation Please contact your Relationship Manager for further information
Tomorrow FX Transaction
Definition FX transaction in which the value date is one business day after the trade date
Benefit for Customer Certainty in exchange rate and cash flow amount
Risk for Customer
  • Time gap between trade date and value date may pose credit risk
  • Market rate on maturity date might be more favorable than the agreed forward rate
  • Possible miscommunication with the Bank on deal side, FX rate, amount or maturity date
Documentation Required
  • Letter of Authorization or similar document to appoint authorized dealers to act on behalf of the customer
  • Letter of Indemnity for Foreign Currency Transaction against RupiahTransactional
  • Statement Letter and Underlying Document (as required by BI Regulation concerning Foreign Currency Transaction against Rupiah between Banks and Domestic or Foreign Party)
  • Other documents as the Bank may require from time to time
Procedure for Customer
  • Customer must have FX line with the Bank
  • Complete the documentation required
  • Contact the Bank’s Treasury Corporate Sales and Structuring Desk to book deal, or, if applicable, book directly through the Bank’s online trading platform
  • Send settlement instruction within cut-off time to the Bank’s Operation department
Fees/Cost None
Simulation Please contact your Relationship Manager for further information
Spot
Definition FX transaction in which the value date is on the same date as the trade date
Benefit for Customer Certainty in exchange rate and cash flow amount
Risk for Customer
  • Time gap between trade date and value date may pose credit risk
  • Market rate on maturity date might be more favorable than the agreed forward rate
  • Possible miscommunication with the Bank on deal side, FX rate, amount or maturity date
Documentation Required
  • Letter of Authorization or similar document to appoint authorized dealers to act on behalf of the customer
  • Letter of Indemnity for Foreign Currency Transaction against Rupiah
  • Transactional Statement Letter and Underlying Document (as required by BI Regulation concerning Foreign Currency Transaction against Rupiah between Banks and Domestic or Foreign Party)
  • Other documents as the Bank may require from time to time
Procedure for Customer
  • Customer must have FX line with the Bank
  • Compete the documentation required
  • Contact the Bank’s Treasury Corporate Sales and Structuring Desk to book deal, or, if applicable, book directly through the Bank’s online trading platform
  • Send settlement instruction to the Bank’s Operation department
Fees/Cost None
Simulation Please contact your Relationship Manager for further information
Forward
Definition FX transaction in which the value date is beyond two business days after the trade date
Benefit for Customer Certainty in exchange rate and cash flow amount
Risk for Customer
  • Time gap between trade date and value date may pose credit risk
  • Market rate on maturity date might be more favorable than the agreed forward rate
  • Possible miscommunication with the Bank on deal side, FX rate, amount or maturity date
Documentation Required
  • Master Agreement for FX Transactions or ISDA Master Agreement
  • Letter of Authorization or similar document to appoint authorized dealers and signatories (for, among others, Confirmation) to act on behalf of the customer
  • Letter of Indemnity for Foreign Currency Transaction against Rupiah
  • Transaction Statement Letter and Underlying Document (as required by BI Regulation concerning Foreign Currency Transaction against Rupiah between Banks and Domestic or Foreign Party).
  • Other documents as the Bank may require from time to time
Procedure for Customer
  • Customer must have FX line with the Bank
  • Complete the documentation required
  • Contact the Bank’sTreasury Corporate Sales and Structuring Desk to book deal, or, if applicable, book directly through the Bank’s online trading platform
  • Send settlement instruction to the Bank’s Operation department
  • The Bank’s Treasury Operation will send FX forward deal confirmation to customer. Customer must sign and send the confirmation back to the Bank’s Treasury Operation
Fees/Cost None
Simulation Please contact your Relationship Manager for further information
Derivatives
FX Option
Definition A derivative product where the option buyer has the right (but not the obligation) to exchange money denominated in one currency into another currency at pre-agreed exchange rate (“strike rate”) on a specified date
Benefit for Customer
  • Protection against adverse foreign exchange movement (for option buyer)
  • Yield enhancement (for option seller)
Risk for Customer
    For option buyer:
  • Loss of premium paid when the option is lapsed/expired with no value to the option buyer (i.e. if the market rate on maturity is better than the agreed option strike rate)

  • For option seller:
  • Market rate on maturity might be more favorable than the agreed option strike rate, resulting an unlimited potential loss
Documentation Required
  • ISDA Master Agreement or other form of agreement acceptable to the Bank
  • Letter of Authorization or similar document to appoint authorized dealers and signatories (for, among others, Confirmation) to act on behalf of the customer
  • Letter of Indemnity for Foreign Currency Transaction against Rupiah
  • Transactional Statement Letter and Underlying Document (as required by BI Regulation concerning Foreign Currency Transaction against Rupiah between Banks and Domestic or Foreign Party)
  • Other documents as the Bank may require from time to time
Procedure for Customer
  • Customer must have FX line with the Bank for selling options
  • Complete the documentation required
  • Contact the Bank’s Treasury Corporate Sales and Structuring Desk
  • The Bank’s Treasury Operation will send option deal confirmation to customer. Customer must sign and send the confirmation back to the Bank’s Treasury Operation
  • On expiry date, the Bank’s Corporate Sales and Structuring officer will inform customer on the option status. Customer must send instruction accordingly.
Fees/Cost None
Simulation Please contact your Relationship Manager for further information
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