Foreign Exchange Services

Foreign Currency Wire Transfer

A foreign currency wire transfer is an electronic transfer of a foreign currency with payment instructions from one bank to another. The payment instructions provided by the sending party ensures proper credit to the beneficiary at their local bank. Any person or company that needs to send a payment to a beneficiary in a foreign country is able to do so in a quick and efficient process that provides enhanced control of the process for the sending party. The advantages include control of the currency exchange for the transfer of funds, and assurance that the funds are deposited directly to the beneficiary's account, providing immediate receipt of the funds for the beneficiary.

A foreign currency (FX) wire transfer is as simple as arranging a domestic wire transfer. Our international wire service provides you a prompt alternative to transfer funds in all the major and minor currencies around the world. We offer competitive foreign exchange rates that vary according to market conditions. To fulfill your financial obligation in international business, sending a FX wire can ensure the payment to a foreign country and, at the same time, facilitate better cash flow management. Click here for frequently asked questions about Outgoing FX Wire.

On-line Foreign Currency Wire

Through United Commercial Bank's Cash Management Services, our business customers are able to process foreign currency wires through our on-line service. This on-line service provides an enhanced level of service and control to our business customers for their international payments.

This state-of-the-art feature allows you to prepare and process your wire in more than 30 foreign currencies through our user-friendly on-line service. You will obtain the complete control of your international payments and a higher degree of efficiency. The multi-layer password protection ensures you the security and privacy over the internet access. Click here for frequently asked questions about On-line Foreign Currency Wire.

Foreign Currency Incoming Wire

With our comprehensive FX services, you may accept international payments in foreign currencies, accelerating funds availability and improving cash forecast. According to your needs, the incoming payments can be converted to US dollars at real-time rates or deposited to your foreign currency account. Click here for frequently asked questions about Incoming FX Wire.

International Checks Clearing and Collection

In addition to foreign currency wires, you may accept foreign checks for international payments, enhancing your financial flexibility. Foreign checks, drafts, or traveler's checks which are issued in a foreign country can be presented for international clearing as Cash Letters. This service provides convenient clearing and exchange of foreign items for our customers. Clearing of a foreign item provides relatively prompt payment of the foreign item, subject to due recourse. Our Collection service is also available for checks not eligible for standard clearing, and provides for the collection of final payment from the Remitting party. We have developed global check-clearing network and settlement system that expedite the process of foreign checks denominated in various currencies. Click here for frequently asked questions about International Check Clearing and Collection.

Foreign Currency Draft

In the event that international wire is not feasible, we can issue a foreign currency draft denominated in major and minor currencies that is drawn on major bank in the appropriate country. If a person or company needs to send a check payment to an individual or company domiciled in a foreign country they are able to use a foreign currency draft. It is a straight-forward and easy way to send money abroad in the currency of the country and is often used for smaller payments. The drafts are cleared as local domestic items in the foreign country. Our foreign draft is an affordable and secured payment instrument that is widely used in international trading. Click here for frequently asked questions about Foreign Currency Draft.

Foreign Currency Account

Our sophisticated FX Services provides you the option to establish foreign currency deposit accounts (FCDA) including demand deposit accounts (DDA) and time deposit accounts (CD). A foreign currency deposit account provides local access to foreign currency and can be used for the settlement of incoming and outgoing foreign currency wires, providing you with greater control over your international payables and receivables. You will be able to access your foreign currencies to improve cash liquidity and strengthen the profitability of your funds based on prevailing market rates. Click here for frequently asked questions about foreign currency accounts.

Foreign Currency Cash Transaction

Whenever you need to buy or sell foreign currency, simply contact one of our branches. Through the convenience of your local branch, you are assured of convenience, confidence and security when buying or selling foreign currency cash. Our customers are provided the convenience of dealing directly with your own bank, the confidence of using a known banking resource and the security that the monies are safe convertible currency. The sale of foreign cash to UCB can be completed immediately, however please allow two business days for delivery when requesting foreign currency for purchase. We make available more than 60 different currencies, giving you the ease and convenience of preparing for your travel. Click here for frequently asked questions about Foreign Currency.

Foreign Currency Hedging / Forward Contracts

If you are concerned the exchange rate risk associated with the FX transactions, our experienced professional staff can help reduce the volatility of your exposure. We are proficient in developing the proper hedging strategies to manage the FX risks resulted from the ever-changing international economic and political environment.

A Forward Contract is the purchase or sale of a specified amount of a foreign currency, at a future date, at a fixed rate of exchange. United Commercial Bank allows Forward Contracts up to one year from the trade date. Forward rates are based on the current Spot rate in the market and the Forward points as determined by the interest rate differentials of the countries involved. United Commercial Bank takes pride in providing competitive Forward exchange rates.

There are two types of Forward Contracts:

1. A Window contract provides for the settlement of the currency anytime within the term or 'window' of the contract period, usually up to 30 days. For example if you contract to purchase an amount of foreign currency during the month of January, the settlement of the foreign currency can be completed any time during the month of January. It will even allow for multiple draw-downs during the 'window' period.

2. A 'Fixed Date' contract provides for the settlement of the currency on a specific date. The Forward date can be any business date available in both the US and the foreign country.

Any company which has exposure in elapsed time between placing or receiving orders and making or receiving payments can use Forward Contracts to hedge their exposure. This allows the company to lock in fixed costs or receivable amounts for the foreign currency, thus removing foreign exchange exposure to volatile currency rates at the time the foreign obligation is created.

Customers who want to trade in Forward Contracts will need a Forward Trading Facility supported by a line of credit or collateral deposit. Contact the Foreign Exchange Services traders to learn more about how Forward Contracts can work for you. Click here for frequently asked questions about FX Hedging.