California Bank & Trust’s Foreign Exchange services are designed to meet our customers’ various international needs. Whether your company is new to the international business arena, expanding into new markets, or managing a complex network of global partners, our team will help you design and execute an appropriate risk management strategy. 

Value

Your company can realize the benefits of proactive foreign exchange management by collaborating with our knowledgeable and experienced professionals.  If you have cross border flows as a part of your regular business, intentional management of your foreign currency exposure, you can derive benefit from:

• Enhanced protection against currency appreciation or depreciation
  
• Preservation of international business revenues
• Broad range of risk mitigation services
• Stronger negotiating power with international suppliers and customers
• Improved accessibility to new overseas markets for business growth
• Intentional management of foreign exchange rates.

Relationships

We understand the complex concerns that a company experienced in foreign exchange may have. We also support our customers that have smaller or less complicated transactions and will invest the time to ensure your needs are met. You will receive helpful market advice, efficient execution of your trades and competitive pricing. Our operations and investigations support teams are located in house. Our firm commitment to our clients ensures each receives the excellent level of service that California Bank & Trust is proud to provide.

Solutions

Our foreign exchange team is dedicated to providing your business with the appropriate solutions to manage your cross-border transactions and foreign exchange risk. We cover all major and many minor currencies, encompassing more than 95% of global trade volumes. We provide clients several foreign exchange delivery channels. eFX+ is our dynamic online dealing system that offers live rates, repetitive instruction templates and self-directed administration. We provide a quick and straight-forward alternative for initiating international wires. Learn more about our solutions:

Spot Contracts

Spot foreign exchange contracts provide the fastest way to convert one currency to another – useful in handling payables or receivables involving foreign currencies.

For most currencies, payment typically takes two business days. Payments in advance, open account settlements, and letters of credit all can be handled through spot contracts, a simple but effective way to make payments internationally. Two examples include:

• Foreign currency payable: Your company purchases auto parts from Japan. The invoice is received and due in Yen immediately. CB&T can pay the full Japanese yen amount and debit your account for the US dollar equivalent.
  
• Foreign currency receivable: Your company sells computer equipment to Canada. The Canadian buyer agrees to make payment in Canadian dollars as soon as the equipment is received. The customer is given CB&T’s Canadian banking procedure instructions so we can convert the Canadian currency to the US dollar equivalent and credit those US dollars to your account.

Forward Contracts

With forward foreign exchange contracts, you can manage currency exposure beyond the spot contract price securing an exchange rate now for settlement at a future date.

This hedging technique can protect profit margins and increase your competitive standing worldwide. Anticipated foreign payables or receivables can be contracted at today's market levels to protect against future currency fluctuations.

Each forward contract includes two components

• The spot, or current, value of the currencies
  
• Interest rate differentials between the two currencies, which allow markets to adjust for the time value of money

If the spot is for settlement in two days, the forwards will allow pricing to reflect which currency is more attractive to hold beyond spot. A forward contract is either more attractive or less attractive, depending upon whether you are buying or selling a currency with a higher rate of interest.

Window Forward Contracts

The world is not a perfect place – so it's often challenging to determine exactly when a payment will take place. Production or shipment dates, the conclusion of legal matters, and invoice discounting all can impact when payments are released. Yet even when settlement dates are not certain, it is still possible to hedge foreign currency transactions by the use of a Window Forward contract.

Window Forward contracts work in same manner that forward contracts do with one exception: allowing the settlement over a period of time rather than one specific date – giving you more flexibility and convenience.

Non-Deliverable Forwards

As a short-term currency derivative instrument, a non-deliverable forward contract is essentially a cash-settled outright forward forex contract on the price of a foreign currency at the contracted settlement date.

The profit or loss on the notional value of the contract is adjusted between two counterparties based on the difference between the contracted forward rate and the prevailing spot rate. Settlement is made is US dollars.

EFX+

eFX+ is CBT’s innovative online foreign exchange trading portal. It provides access to real-time foreign exchange rates and enables customers to quickly and efficiently complete their company’s foreign exchange transactions. The robust capabilities and set of services offered by eFX+ can be customized to meet your company’s needs for managing foreign exchange risk in real time.

The system provides:

• Streaming FX rates for Spot, Forward and Swaps
• A bulk pricing option to enable a volume approach to currency transactions
• Client approval of both single and bulk transactions
• Batch deal trade entry
• File upload capability
• Flexible configuration for maximum deal size and daily approval totals, controlled by User
• Maximum deal size and daily approval totals can be configured by User
• Bank-validated standing settlement instructions
• Seven user authority levels to meet company internal control requirements
• SS 128-bit encryption system security
• Automated email notification to the beneficiary of outgoing payment initiation
• Single Sign-On capability with California Bank & Trust Treasury Gateway
• Independent management and setup of Users by Client Administrator
• Flexible transaction reporting
• Daily market commentary updated on the eFX+ dashboard
• Self-directed Foreign Currency Accounts (terms and conditions apply) with ability to view balances, initiate single foreign currency wires, and receive up-to-date account reporting

Foreign Currency Bank Notes

Convenience from A Reliable Relationship

Departing on that long-awaited vacation to Europe? Returning from business meetings in Hong Kong? Make CB&T your reliable source for exchanging more than 80 foreign currencies from around the globe. With user-friendly order options and competitive exchange rates,

Service

When travelling globally, the last thing you need to worry about is having the appropriate currency in hand when you arrive. You can take care of this at CBT before you leave and arrive with local currency for tips, food and transportation.

You can avoid the hassle, timing issues and potential extra fees associated with exchanging currency at local banks, airports, train stations, hotels, private exchange kiosks and ATMs. When you return, any unused foreign currency (no coins) can be brought back to us and we’ll buy it back at prevailing exchange rates.

Savings

You will receive reliable, competitive exchange rates, which are updated daily, for both buying and selling foreign currency from your local bank.

Know your exchange rate/conversion before leaving for more accurate expense accounting. Don’t get caught at the mercy of local merchants or street vendors, or get stuck upon arrival needing local currency and having to use whatever is available. And remember, our customers do not pay any additional service fees for buying or selling foreign currency with us.

International Wire Transfers

Foreign currency wires are a fast, secure way to send payments in most foreign currencies and US dollars. At CB&T, you can rest assured that your funds will reach their destination within 48 hours.

We offer electronic funds transfer service for your convenience – transmitting your payment instructions using FEDWIRESM and SWIFT communications networks, and notifying you when you receive funds.