Bank of America has introduced Guaranteed FX Rates with tenors extending up to one year, the longest currently available in the industry. This new offering aims to help companies manage foreign exchange risk associated with cross-currency payments and receipts. By using this solution, businesses can mitigate exposure to currency fluctuations and simplify treasury management processes like forecasting and reconciliation.
Bhupen Velani, head of Transactional FX Trading in Global Markets at Bank of America, stated, “When FX risk is managed appropriately and efficiently, it can bring enormous value to companies that process large volumes of cross-border payments.” He noted that as clients' business models have evolved, the volume of these transactions has increased, enhancing the appeal of locking in FX rates for longer periods.
The growth in cross-border payment volumes is largely driven by sectors such as e-commerce, services, manufacturing, and gig industries. Technological innovations are also contributing to this trend. This year marks eight years since Bank of America first launched Guaranteed FX Rates beyond a 24-hour tenor. Since then, key developments include support for over 200 currency pairings across multiple tenors and an increase in eligible currencies based on client demand. The one-year tenor is now available for 37 currency pairs.
Daniel Stanton, head of Transactional FX in Global Payments Solutions at Bank of America, commented on the benefits for corporate treasurers: “Securing guaranteed FX rates of longer tenors can help them improve forecasting, which will lead to better informed decision-making.”
Clients can access these Guaranteed FX Rates through the CashPro® platform or via Swift without requiring additional technology changes.
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 highlighted that Bank of America's transactional FX business has "quickly risen to become one of the top three global players," reflecting its strategic vision and innovative products.
CashPro is described as an award-winning digital banking platform used by over 550,000 users at 40,000 companies for managing payments and other financial transactions.
Bank of America serves a wide range of clients worldwide with various financial services. It operates approximately 3,700 retail financial centers and about 15,000 ATMs across the United States while maintaining a significant presence globally.
For further information or inquiries:
Louise Hennessy
Phone: 1.646.858.6471
Email: louise.hennessy@bofa.com
Sheryl Lee
Phone: 1.657.234.9950
Email: sheryl.lee2@bofa.com