Exchange Rate

Exchange rates represent the value between the currencies of two countries on a given date. These rates are free-floating or fixed. In most cases, exchange rates are free-floating and the value can rise or fall based on market supply and demand. Fixed exchange rates have more restrictions and their value is set by the government.

Core Banking uses exchange rates in limit, collateral, credit facility, and third-party invoices calculations, when the contract and the attached limit/ collateral, the credit facility and its attached contracts, or the third-party invoice and its details are expressed in different currencies. Operational Ledger also uses exchange rates to calculate all amounts using the accounting reference currency.

 To manage exchange rates needed in financial operations, follow these steps:

  1. In FintechOS Portal, click the main menu icon and expand the Admin Configuration menu.

  2. Click the Exchange Rate menu item to open the Exchange Rate page.

On the Exchange Rate page, you can add new exchange rates or search, edit, and delete existing ones.

Creating Exchange Rates

Follow these steps to create a new exchange rate:

  1. Click the Insert button on the Exchange Rate page to open the Create and Save page.

  2. Fill in the following fields:

    • Exchange Type - Select the exchange type rate, if more than one was created in Core Banking.

    • Exchange Date - Select the date of the exchange rate.

    • From Currency - Select the currency from which the exchange rate is made.

    • To Currency - Select the currency into which the exchange is performed.

    • Exchange Rate - Enter the exact rate for the exchange to be applied on the exchange date.

    • Multiplicator - You can multiply the exchange rate value with the whole number that you insert here. The default value is 1.

    • Calculated Exchange Rate - Automatically completed with the exchange rate calculated based on the following formula: ExchangeRate * Multiplicator. You can edit the field.

  1. Click the Save and Close button. Core Banking saves the exchange rate record.