Foreign Exchange

FOREIGN EXCHANGE TRANSACTION
Easy and fast solutions to meet your foreign exchange needs through Internet / Mobile Banking and FX Order Watch services.

Foreign Exchange transaction to fulfill your needs related to payments in foreign currency, and value protection (hedging) towards customers’ wealth

TYPE OF SERVICE

Commonwealth Bank offers 8 choices of currencies:
  • US Dollar (USD)
  • Australian Dollar (AUD)
  • Euro (EUR)
  • Poundsterling (GBP)
  • Singapore Dollar (SGD)
  • Japanese Yen (JPY)
  • China Yuan (RMB)
  • New Zealand Dollar (NZD)

FOREIGN CURRENCY SERVICES SOLUTIONS



FX Order Overnight Watch

Facility of FX transaction ordering instruction with customer determined rate with settlement instruction automatically if instruction is executed. Customers can transact at rate according to customer's desire without any transaction time limit

Market Update
News updates on currency market conditions by the Commonwealth Bank Treasury team. Customers can receive the latest news via phone or SMS.
The information that is prepared and distributed by the Commonwealth Bank Treasury team is made based on publicly available information and comes from a trusted source. Available information and foreign exchange rates may change at any time without notice.


Available foreign currency transactions:

Today, Tomorrow, and Spot
  • Transaction done today by using the current exchange rate
  • Delivery period not more than 2 working days after the transaction date

Forward

  • Transaction done today by using the current exchange rate
  • Delivery period in the future (more than 2 working days)

Forward Transaction Illustration

On 1 June 2017, PT. ABC received an invoice of USD 100,000 from XYZ.LTD for Import trade transaction. Received invoice is due on 31 August 2017. To mitigate Foreign Exchange risk, PT.ABC entered Forward Transaction contract with Commonwealth Bank.
Spot Price for Bank Sell USDIDR on 1 June 2017 is at 13,300 and Premium price for Forward transaction due on 31 August 2017 is 300 points. Total of USDIDR transaction value for forward contract with settlement date on 31 August 2017 from 1 June 2017 will be 13,600.

Transaction Date

Settlement Date

1 June 2017

31 August 2017

PT. ABC Agreed on forward contract to purchase USD 100,000 from Commonwealth bank from Commonwealth Bank on 31 August 2017 at the price of 13,600

Commonwealth bank will debit IDR 1,360,000,000 from PT.ABC account and Credit USD 100,000 as settlement for the Forward contract.



Commonwealth Bank Tutorial: Foreign Exchange Internet Banking


BENEFIT

  1. Potential capital gain in short term or long term period
  2. High liquidity, since it can be traded anytime
  3. Available in various currencies which would give trading flexibility
  4. Two types of potential capital gain (either the value of the foreign currency rise or depreciate)
  5. Active market for 24 hours nonstop, 5 days a week
  6. Information Transparency
    Easily attainable foreign currency value information
  7. Low cost
    Transaction fee is taken from spread between buy and sell price

RISK

Market Risk - Volatile price movement affected by market and economic conditions, which would results in investors experiencing capital loss.

TERMS & CONDITIONS FOR FOREIGN EXCHANGE TRANSACTION

  • Age between 21-75 years old or married
  • Have an active Commonwealth Bank account
  • Attaching tax ID
  • Fill in and sign Request Foreign Exchange Form, Terms and Conditions, Power of Attorney to block and debit bank account, and Fax Indemnity letter

Should you require further information, please contact Call Commbank (24 hours) in 15000-30 or (area code) 15000-30 from mobile or visit our nearest branch.

FEE & CHARGES

There is no additional fee for foreign exchange transaction only a spread between buy and sell price.

DISCLAIMER:

Foreign exchange transaction has market risk in regards to foreign exchange market movement. Customers are required to read and understand the risk related to the transaction before making any decisions on transactions.