BofA Extends Guaranteed FX Rates Up to 1-Year

Rhea-AI Summary

Bank of America has extended its Guaranteed FX Rates offering to up to 1-year, the longest tenor in the industry. This extension aims to help companies manage foreign exchange risk associated with cross-currency payments and receipts. The solution now supports over 200 currency pairings across multiple tenors, with the 1-year tenor available in 37 currency pairs.

Key highlights include:

• Clients who adopted Guaranteed FX rates in 2024 account for over 20% of year-to-date volume growth
• Currency pairs with notable volumes include USDMXN, EURUSD, USDCAD, GBPUSD, EURCZK, AUDUSD
• Clients can access the service through CashPro® platform and Swift

Bank of America was recently named the World's Best Bank for FX Payments by Euromoney magazine, recognizing its leadership in foreign exchange and its position as one of the top three global players in transactional FX business.

Positive

• Extended Guaranteed FX Rates offering to up to 1-year, the longest in the industry
• Supports over 200 currency pairings across multiple tenors
• 1-year tenor available in 37 currency pairs
• Clients adopting Guaranteed FX rates in 2024 account for over 20% of year-to-date volume growth
• Named World's Best Bank for FX Payments by Euromoney magazine
• Recognized as one of the top three global players in transactional FX business

Negative

• None.

News Market Reaction

-1.32%

1 alert

-1.32% News Effect

On the day this news was published, BAC declined 1.32%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Extension Follows Growth In Cross-Border Payments
Company Named World's Best Bank for FX Payments

NEW YORK and SINGAPORE and LONDON, Oct. 20, 2024 /PRNewswire/ -- Bank of America is simplifying the management of foreign exchange (FX) risk associated with cross-currency payments and receipts with the introduction of Guaranteed FX Rates of up to 1-year¹, the longest tenor available in the industry today.  Using this strategic solution can help companies mitigate exposure to currency fluctuations and simplify treasury management processes such as forecasting and reconciliation.

"When FX risk is managed appropriately and efficiently, it can bring enormous value to companies that process large volumes of cross-border payments," said Bhupen Velani, head of Transactional FX Trading in Global Markets at Bank of America. "As our clients' business models have evolved, these volumes have increased, and so too has the appeal to lock in FX rates with longer tenors."

In recent years, the volume and value of cross-border payments has continued to dramatically increase with much of the volume generated by businesses in the e-commerce, services, manufacturing and "gig" industries (companies and individuals engaging in short-term, project-based work). The growth is also being spurred on by innovations in technology.

This year marks the 8th year since BofA launched Guaranteed FX Rates beyond a 24-hour tenor. Key developments of the solution since then include:

• Guaranteed FX Rates today supports over 200 currency pairings across multiple tenors.
• Currencies eligible for Guaranteed FX Rates have increased steadily based on client demand.
• The 1-year tenor is available in 37 currency pairs.
• Currency pairs with the most notable volumes include USDMXN, EURUSD, USDCAD, GBPUSD, EURCZK, AUDUSD.
• Clients who went live with Guaranteed FX rates in 2024 account for over 20% of year-to-date volume growth.

"For corporate treasurers, volatile FX markets exacerbate the challenge of cash flow forecasting," said Daniel Stanton, head of Transactional FX in Global Payments Solutions at Bank of America. "Securing guaranteed FX rates of longer tenors can help them improve forecasting, which will lead to better informed decision-making."

Bank of America clients can access Guaranteed FX Rates through the CashPro^® platform and via Swift with no additional technology changes required.

World's Best Bank for FX Payments
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 noted Bank of America's transactional FX business has "quickly risen to become one of the top three global players," reflecting "the bank's strategic vision, innovative products and global reach, enabling it to secure a strong market position and stand out in the competitive FX industry." 

About CashPro
CashPro is Bank of America's award-winning digital banking platform accessed by over 550,000 users at 40,000 companies to manage and monitor their payments, deposits, loans, and trade finance transactions.

Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,700 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 58 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

Reporters may contact:
Louise Hennessy, Bank of America    
Phone: 1.646.858.6471
louise.hennessy@bofa.com

Sheryl Lee, Bank of America 
Phone: 1.657.234.9950
sheryl.lee2@bofa.com 

¹ Length of one year is subject to Bank of America TFX Trading approval.

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SOURCE Bank of America Corporation

FAQ

What is the new tenor for Bank of America's Guaranteed FX Rates (BAC)?

Bank of America has extended its Guaranteed FX Rates offering to up to 1-year, which is currently the longest tenor available in the industry.

How many currency pairings does Bank of America's Guaranteed FX Rates support (BAC)?

Bank of America's Guaranteed FX Rates solution now supports over 200 currency pairings across multiple tenors.

What recognition did Bank of America receive for its FX services in 2024 (BAC)?

In 2024, Bank of America was named the World's Best Bank for FX Payments by Euromoney magazine, recognizing its leadership in foreign exchange.

How can clients access Bank of America's Guaranteed FX Rates (BAC)?

Bank of America clients can access Guaranteed FX Rates through the CashPro® platform and via Swift with no additional technology changes required.