3.2.1.1 Fixed Exchange Rate Through Transaction (Fixed rate)
This topic provides the information on Fixed Exchange Rate Through Transaction.
- For cross-currency utilization/block transactions, you can provide a fixed exchange rate. This rate is used to derive the utilization/block amount in the limit currency instead of the predefined rate configured in Exchange Rate Maintenance.
- Revaluation performed as part of the utilization/block transaction for all amounts uses the provided exchange rate.
- The provided exchange rate applies only to the primary limit entity for the direct utilization/block. It does not apply to indirect utilizations/block up the hierarchy (Main Line, Liability, Parent Liability) unless UPWARD_PROPAGARTION flag is set as ‘Y’.
- Contracts/accounts whose utilization/block transactions use a fixed exchange rate are excluded from Currency Revaluation during batch processing. Batch revaluation does not apply to fixed-rate utilization/block transactions.
- Applicable to all Limit Entity utilizations/block: Facility, Collateral, Pool, Liability, and Exposure.
- Applies to utilization/block operations: New, Alter, Increase, and Decrease.
- Not applicable to: Delete, Mature, Undo, Reverse Utilization/block, or Event Reversal requests.
Example for Facility Utilization:
Table 3-14 Facility Utilization
| Entity | User Ref No | Action | Exchange Rate | Util/Txn CCY | Util Amount | Matured Amount | Limit CCY | Limit Util Amount | Limit Matured Amount |
|---|---|---|---|---|---|---|---|---|---|
| Facility (F1) | UTIL_02 | New | 2 | GBP | 1000 | 0 | USD | 2000 | 0 |
| UTIL_02 | Decrease | 2.5 | GBP | 700 | 300 | USD | 1750 | 750 |