Foreign Exchange Q&A

How do I make a foreign payment?

1. Set up an FX facility. Simply call our friendly foreign exchange team on 020 7655 3449 to request an application form and advise the amount and currency you wish to exchange.

2. Complete the form and send back to us at Close Treasury.

3. Agree an exchange rate and confirm that you wish to proceed.

4. The transfer from Close Treasury takes place and payment is made.

Can I make a third party payment?

Yes, we can arrange third party payments. Simply contact us on 020 7655 3449 to request a third party payment form. We will however, as part of the transaction, require documetnary evidence of the payment. Please also see our 'Approved Countries' list for details of countries we are currently able to make payments to

How do I lock in a foreign exchange rate?

Once your account has been set up, all foreign exchange transactions can be executed over the telephone.

Call one of our specialist foreign exchange team member’s on 0207 655 3449 who will quote you a competitive live price.
The exchange rate can be agreed on the telephone so you will know the exact cost of your purchase. We quote live from the market so prices are moving every second.
If you are happy with the quote, we can lock in the rate.

What is the difference between spot and forward foreign exchange?

A Spot Contract is the agreement to buy or sell a certain amount of foreign currency at the current market rate for settlement in two business days time.

A Forward Contract is the agreement to buy or sell a certain amount of foreign currency at a pre-agreed rate on a certain date in the future (up to two years).

A Forward Foreign Exchange Rate is based on the spot rate at the time the deal is agreed which is then adjusted to reflect the interest rate differential between the two currencies involved.

How do I lock in a forward foreign exchange rate?

Once your account has been set up to deal in Forward Foreign Exchange contracts, you can simply call one of our FX Dealers on 0207 655 3449 who will be able to lock in a forward exchange rate. We will however require a 10% margin which will be held in an interest bearing account until your forward matures (15% margin is required for some currency pairs).

Why do companies use Forward Foreign Exchange Contracts?

A forward contract is a way of covering exchange rate risk by locking in an exchange rate. Dealing solely in the spot market can be a high risk strategy as exchange rates can move significantly in a short period of time and you could lose significant amounts if the exchange rate moves against you. By locking in a forward exchange rate you are able to know what exchange rate you will achieve and therefore cover your bottom line.

How do I hold currency purchases with Close Brothers?

When you set up an account with us we will also open an interest bearing currency account for you to hold funds in. This will enable you to take advantage of exchange rate movements in your favour without having to transfer the proceeds straight away. You can wait until the exchange rate reaches a point where you are happy to make the exchange.

Can my customers pay directly into my Currency Accounts with Close Brothers?

Yes – please contact us for our Approved Country List for details of countries we are currently able to receive payments from.

Can you process foreign currency cheques?

Yes - you simply need to post the cheque to us and we will process it through the international clearing system. You will be notified once funds have cleared.

Please note that some countries require the cheque to be endorsed before paying in. In order to avoid potential delays in processing your cheque please check before sending it to us.

Do you charge to receive currency?

Close Treasury will not charge to receive funds into your account but fees may be taken by the remitting bank.

How much does it cost to convert my currency?

We do not charge commission on currency conversions and transfers can be made back to your nominated account free of charge.

How long do currency transfers take?

Transfer times will vary depending on where in the world you are sending funds to. Provided we have confirmed your instruction before 11.00am, transfers in USD and Euro will be sent for same day value. Other currencies take 2-3 working days.

How safe are funds held with Close Brothers?

Close Brothers Limited is authorised and regulated by the Financial Services Authority and is a member of the Financial Services Compensation Scheme (“FSCS”) which protects up to £50,000 of an eligible depositor’s funds held with the bank.

How can I keep updated with market movements?

The foreign exchange market is constantly moving. We can keep you updated with our Daily Market update as well as our currency tracker service which allows you to specify a target rate at which you wish to be notified at by email or by phone. Please visit http://www.closetreasury.co.uk/fxrates.asp (and don’t forget to ‘add this to ‘favourites’ in your browser).

What currencies do you deal in?

USD - US Dollar

EUR - Euro

JPY - Japanese Yen

CHF - Swiss Franc

AUD - Australian Dollar

CAD - Canadian Dollar

HKD - Hong Kong Dollar

SGD - Singapore Dollar

ZAR - South African Rand

NZD - New Zealand Dollar

SEK - Swedish Kroner

DKK - Danish Kroner

NOK - Norwegian Kroner

AED - Arab Dirham

PLN - Polish Zloty