Small FX Limit Check & Currency Conversion
For a cross currency payment transaction where debit currency and transfer currency are different, exchange rate is picked up as maintained for the transaction branch.
If Small FX limit is defined in Network Currency Preferences, then the auto rate pick up takes place only if the transfer amount is within the small FX limit.
Exchange Rate Type is based on Network preferences maintained. Buy/Sell indicator is derived by the system.
If the transfer amount is above the small FX limit specified, the rate is fetched from the internal exchange rates maintained in CORE.
If the transfer amount is above the small FX limit specified, system checks whether External Exchange Rate is applicable in Network Preferences.
If external system is available the transaction details, then system sends request to external system for receiving the exchange rate.
Based on the response received, exchange rate is populated and further processing of transaction will continue.
- A-Approved: Response with exchange rate
- R-Rejected: No exchange rate available in response or resulted in error
- T-Timed out: Request is timed out
If Small FX limit is not maintained, auto rate pick up is done from internal rates maintained, for all cross currency payment transactions without any limit check.
- Exchange Rate derivation based on core system maintenance fails
- Small FX limit is breached and no external exchange rate system maintenance is available
Payment contract is moved to external exchange rate queue if response from External Exchange Rate system is rejected or timed out. If advance FX booking is done, then the FX reference can be provided in the payment request. This reference is sent to External system along with the external FX request for validation. If FX reference is not provided in payment request and if the external system provides a new reference, the same can be stored for the transaction.
It is possible to provide exchange rate manually from Queue screen if the external rate fetch failed so that transaction proceeds with further processing.
Note:
Creation of the FX transaction, utilizing and tracking the same will be handled in the external system.
The FX reference number generated in the external system can be captured as part of transaction input, and the same will be shared to the external system, as part of the external exchange rate pickup request.
If no FX reference number is input during transaction creation, the same will be blank in the external exchange rate request. On this case, the external system is expected to create a FX transaction and share the same.
External rate fetch is applicable for a payment, if the transfer amount is greater than the small FX limit maintained in Network Currency maintenance (PMDNCPRF) and External Rate fetch is made applicable in the Network preferences (PMDNWPRF).
If external rate fetch needs to be made applicable for all transactions, the small FX limit needs to be maintained as 0.
Changes are done in inbound payments External rate fetching. System applies the FX rate preference maintained in Inbound Payment Processing Preferences before sending the external FX rate request.