DBS launches forex rate lock-in for SMEs on payments up to US$1 million
Businesses can access the feature through the bank’s SecureFX service
SMALL and medium-sized enterprises (SMEs) banking with DBS can now secure their preferred foreign exchange rates for five currency pairs up to one month in advance when making local and overseas payments.
Businesses can lock in rates for payments of up to US$1 million at any given time, without requiring credit lines or incurring additional costs, DBS announced on Monday (Mar 3).
The five currency pairs available are: the US dollar to the Singapore dollar (Singdollar), the euro to the Singdollar, the euro to the US dollar, the British pound to the Singdollar, and the yen to the Singdollar.
SMEs can access this feature through DBS’ SecureFX service, available within its corporate banking platform, DBS Ideal.
DBS noted that the launch comes as more SMEs plan to expand into global markets.
It cited findings from its latest Business Pulse Check Survey, released in February, which found that around 70 per cent of SMEs intend to allocate capital towards regionalisation, with a growing number also transacting in foreign currencies.
DBS said: “By locking in preferred rates for future-dated foreign currency payments, SMEs – including smaller ones with no credit lines – can better manage their cash flow and foreign exchange risk.”
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