Foreign Exchange

We provide banking services to meet customer’s currency needs with competitive exchange rates and various main currency choices.

1. Foreign Exchange Today (FX – TOD), Foreign Exchange Tomorrow (FX – TOM) and Foreign Exchange Spot (FX – SPOT)

Currency exchange transactions against other currencies at an exchange rate that has been agreed by both parties on the transaction date, where the transfer of funds is made on the same day as the transaction date for TOD currency, 1 (one) business day after the transaction date for foreign currency TOM, and 2 (two) working days after the transaction date for SPOT currency.

Benefits:

  • Competitive exchange rates.
  • Available in various currencies (USD, EUR, GBP, AUD, NZD, CAD, CHF, CNH, HKD, JPY, SGD, SEK, THB, SAR, MYR, AED)

 

2. Foreign Exchange Forward (FX – FWD)

Currency exchange transactions against other currencies with exchange rates that have been agreed upon by both parties on the transaction date, where the transfer of funds is carried out more than 2 (two) working days after the transaction date.

Benefits:

  • Competitive exchange rates.
  • Provide hedging needs for customer of more than 2 (two) working days after the transaction dates.
  • Available in various currencies (USD, EUR, GBP, AUD, NZD, CAD, CHF, CNH, HKD, JPY, SGD, SEK, THB, SAR).

 

3. Swap (FX – SWAP)

Exchange of 2 (two) currencies through cash purchases or sales with futures sales or repurchases carried out simultaneously at the same Bank and at the premium or discount rate and the exchange rate made and agreed on the transaction date.

Benefits:

  • Competitive exchange rates.
  • Provide hedging needs for customer of more than 2 (two) working days after the transaction dates.
  • Available in various currencies (USD, EUR, GBP, AUD, NZD, CAD, CHF, CNH, HKD, JPY, SGD, SEK, THB, SAR)
     

4. Domestic Non-Deliverable Forward (DNDF)

Type of plain vanilla derivative transactions against rupiah which is in the form of Forward Transactions with a fixing mechanism carried out in the domestic market.

The fixing mechanism is a transaction settlement mechanism without movement of principal funds by calculating the difference between the Forward Transaction rate and the reference rate on a certain date that has been stipulated in the contract (fixing date).

The reference rates are:

(i) the Jakarta Interbank Spot Dollar Rate (JISDOR) for the United States dollar against Rupiah on the Reuters page with ticker JISDOR; and

(ii) the middle rate of Bank Indonesia transactions for currencies other than the United States dollar against Rupiah on the Reuters page with ticker BIXY.

Benefits:

  • Competitive exchange rates.
  • Provide hedging needs for customer of more than 2 (two) working days after the transaction dates where the settlement is carried out by fixing mechanism

 

5. Terms, Conditions and Fees

Terms and Conditions:

  • Bank Danamon’s customer
  • Customers do the transaction directly at the branch or Treasury or other media determined by Bank Danamon.
  • Customer completes the Underlying Transaction and other supporting documents in accordance with the regulations.
  • Underlying Transaction submitted to Bank Danamon must comply with the applicable laws and regulations, and Bank Danamon has the right to reject the documents if it do not comply with the applicable laws and regulations.
  • For FX-TOD transactions, funds must be available in the account on the transaction date.
  • For FX-TOM, FX-SPOT, FX-FWD and FX-SWAP transactions, the Customer already has Pre Settlement Exposure/Settlement Risk (PSE/SR) facility/limit and has signed an FX facility agreement (FX Master Agreement) and other agreements. Especially for FX-TOM and FX-SPOT transactions, customers who do not have Treasury PSE/SR facilities/limits can make transactions as long as funds are available in the account on the transaction date.
  • For DNDF transactions, the Customer already has a Pre Settlement Exposure/Settlement Risk (PSE/SR) facility and signed the Master Agreement for Foreign Exchange and Derivative Transactions or the ISDA Master Agreement.
  • The customer has passed the Customer Due Diligence (CDD) and Customer Suitability processes.
  • For DNDF transactions, Customers are required to submit DNDF Underlying Transactions and DNDF Transaction Statements in accordance with applicable legal provisions that can be accepted by Bank Danamon prior to the implementation of DNDF transactions.
  • For DNDF transactions, the types of currencies that can be transacted at this time are: USD/IDR and other currencies against IDR (Forex non USD/IDR) according to Bank Danamon's policy from time to time.
  • For DNDF transactions, Underlying Transaction must be received by Bank Danamon no later than 5 (five) working days after the DNDF transaction date.
  • In the event that the DNDF transaction has a maturity date of less than 5 (five) working days after the transaction date, the Underlying Transaction document must be received by Bank Danamon no later than the maturity date.
  • The transaction nominal and DNDF transaction period do not exceed the nominal value and duration of the Underlying Transaction document.
  • Every settlement of DNDF transactions must be carried out with a fixing mechanism and carried out in Rupiah.
  • DNDF transactions can be rolled over as long as there is outstanding or maturity but early termination is prohibited.

Fees:

  • Customers are not charged for FX-TOD, FX-TOM and FX-SPOT transactions.
  • Premium fee will be charged to the Customer for FX-FWD and FX-SWAP transactions which are calculated based on the components of interest rate, exchange rate and transaction period.