At Investec, a number of our private bank clients have exposure to foreign currency such as US dollars (USD) and Euros. This includes UK-based investment banking professionals who work for American firms and receive their bonuses and profit shares in USD.
“Given the recent fluctuations in the value of the pound, our clients’ currency requirements have naturally been in focus. We are working with them to fulfil their short-term transfer requests, as well as looking at their longer-term exposure,” says Private Client FX Dealer Greig Tonks.
How we can help you with foreign currency exchange
The FX desk provides multiple currency services to facilitate currency needs. The FX dealers can act on your instruction to pro-actively monitor the market for moves in the client's favour, as well as provide FX Forward contracts for foreign currency income.
A Forward contract allows clients to secure an exchange rate for a transaction up to 24 months in advance, as long as the transaction is for commercial or personal reasons. The trade can then be settled on a fixed date (fixed forward) or during an agreed period of time (open forward), such as when a bonus payment is expected. While clients will not benefit if the rate subsequently moves in their favour, the contract can be cancelled if it is no longer required, but a cost is likely to be incurred.
“Some clients see Forwards as an opportunity to provide some certainty around the exchange rate and the value of funds they will receive, as well as a way of potentially securing rates at a favourable level. We work directly with private bankers and their clients to understand their income and help them achieve their goals,” says Greig.
As part of the Investec private banking experience, clients can also utilise Currency Access Accounts which enable 15 currencies to be held in an account with balances that can be viewed and managed by one online interface.
Want to know more about how private banking with Foreign Exchange capability can help you? Please get in touch.
Important information
You cannot book a FX forward for investment or speculative purposes or on behalf of another person. Additional terms and eligibility criteria apply for FX Forwards.
