As trade corridors extend beyond traditional and local markets, mining businesses need to find economically efficient ways of holding cash in more than just Australian and US dollars.
Many businesses have overseas bank accounts to hold money in different currencies, however there are numerous costs associated with these accounts including;
- Excess account keeping costs
- Different terms and conditions for each geography
- Different terms and conditions for each financial entity
- Transaction delays due to different time zones
These costs can be avoided by holding a multi-currency account domestically. For businesses that regularly send and receive offshore payments, a dedicated foreign currency account is the ideal solution.
For trade businesses around Australia that regularly send or receive offshore payments, financial efficiencies can be achieved not only throughout the supply chain and production line, but in the smart management of international transactions.
CommBank’s Foreign Currency Account
The Commonwealth Bank offers a Foreign Currency Account that allows businesses to hold up to 14 currencies and move currencies between accounts with no cost. Businesses can also pool their interest and overdrafts across all accounts.
The Foreign Currency Account can be managed through CommBank’s Global Trade platform on CommBiz, their online business banking system. Users can manage all of their trade finance, foreign exchange and cash management positions through the specialised global trade portal in real time.
CommBank’s Foreign Currency Account allows users to;
- Hold Foreign Currency in Australia – You can access your account in real time online through CommBiz, NetBank or in person at any branch – so your foreign funds are always at your fingertips and in your time zone.
- Convert Currencies When it Suits You – A Foreign Currency Account gives you the convenience and flexibility of converting your funds when it suits you – helping you to avoid converting money when the exchange rate is unfavourable.
- Better Manage Your Working Capital – You can sweep balances between the same currencies across foreign currency accounts, redirect debit and credit interest to other CommBank accounts, pool fees or interest charges and create payment limits across multiple currencies.
- Save on Fees – You won’t be charged any account-keeping fees, and can also transfer between linked CommBank accounts for free.
One of the main benefits of a Foreign Currency Account is that it lets you take advantage of global trade opportunities as they arise.
For more information, visit commbank.com.au/tradefinance or talk to a CommBank Trade Specialist on 1300 654 112.