Clicky

Buying Foreign Currency

The majority of our business is looking after the needs of importers; primarily sending foreign currency payments to overseas suppliers. The steps involved are simple:

 

  1. Call your Forex Group dealer. Quote your currency and amount. We'll quote you the current rate.
  2. Login to our website and add the Beneficiary details or alternatively, use our Transaction Template and fax the details to 1300 722 215.
  3. We will fax or email you a confirmation receipt for your records.
  4. Ensure the details are correct on the receipt and then transfer the AUD value to our settlement account (account details are on the receipt). Alternatively, we do have Direct Debit available for your convenience.

Managing Letters of Credit (LC's)

The establishment of a Letter of Credit, or LC as they are commonly known, is expensive particularly when the issuing bank takes control of the foreign currency exchange. Put simply, companies can reduce the cost of LC’s by pre-purchasing the currency from Forex Group and thus saving money on the exchange rates.

 

A letter of credit is a banking mechanism that allows importers to offer secure payment terms to exporters. All letters of credit contain these elements:

 

  1. a payment undertaking given by the bank (issuing bank)
  2. on behalf of the importer (applicant)
  3. to pay an exporter (beneficiary)
  4. a given amount of money on presentation of specified documents representing the supply of goods
  5. within specific dates

 

Option 1: Open a Foreign Currency Account with your bank

  1. Establish the Letter of Credit with your bank.
  2. Open a Foreign Currency Account with your bank.
  3. Three days before the LC is due, contact your Forex Group dealer and purchase the amount of Foreign Currency needed to pay for the LC.
  4. Forex Group will transfer the foreign currency into your foreign currency account.
  5. The day prior to the LC falling due, advise your account manager that the payment for the LC is to come from your foreign curency account.

 

Option 2: Letter of Credit paid by Forex Group Australia

  1. Establish the Letter of Credit with your bank.
  2. Advise your bank that you have the Foreign Currency coming from an outside source to pay for the LC.
  3. Ask the bank for the account details for the Foreign currency to be sent to and pass this onto your Forex Group dealer.
  4. Three days before the LC is due, contact your Forex Group dealer and purchase the amount of Foreign Currency needed to pay for the LC.
  5. Forex Group will transfer the foreign currency directly to your bank to pay for the Letter of Credit
join-us

arrow

Client Testimonials

Economic Calendar

FacebookTwitterLinkedinYoutubegoogleplusPinterestfeedburner
Website video presenter loading ...