How FX rates work on FinverityOS
For each [Funder/Customer/Corporate Entity] you can define the currency pairs which will be used in the Deal. These FX rates will be used to convert the value of an instrument to the Deal currency in order to calculate the limit used. These FX Rates can be updated via [API and SFTP]
This is an optional step in your Deal setup. It becomes a requirement if your Customers upload Instruments in currencies different from the Programme/Limit currency.
For example:
The Deal and Programme are set in USD
Customer wants to upload an Instrument in AED. Platform Admin will need to create a FX Rate Template where there is a pair for AED -> USD
Customer uploads the Instrument in AED to FinverityOS and submits it
On the day of the payment the FX rate for AED -> USD is locked. Basing on that the limit is calculated and FinverityOS creates a Payment Instruction
The Funder makes the Disbursement in USD
How to use Floating Rates on FinverityOS:
Create an FX Rate Pair under FX Rates in the Products Section
Assign an FX Pair during Adding or Editing Counterparty during Deal Creation
After set up is done: Update the Floating Rates Indexes