Foreign Exchange

FCMB Foreign Exchange Business is ranked among the top banks in terms of market presence, volume and development; it is an active market maker in spot and forwards in the local money market. Importers and Exporters aspiring to operate successfully an import dependent economy like Nigeria require a partner who possesses a sound knowledge of the local market as well as the ability to navigate its regulatory terrain.

FCMB offers you Foreign Exchange Products and Services built over twenty three years of consistently providing multinationals and other clients with trading, in depth analysis and innovative solutions to their foreign exchange needs. This often involves prompt foreign exchange deliveries at best possible rates as well as managing risks associated with cross border trade using various hedging products.

Our foreign exchange products

Outright Purchases :         
In many instances, the customer may have bills to settle in a foreign currency. This is most likely to be the case where the customer is an importer and he requires foreign exchange to pay his customer (the exporter) in another country and in another currency. In such an instance the customer will have to use his naira to purchase the foreign currency. This is referred to as an outright purchase.

Outright Sale :         
In other instances the customer may be in possession of foreign exchange and he may wish to sell it to the bank in return for Naira. This is most likely to be the case where the customer is an exporter and earns part of his revenue in foreign exchange or where the customer is raising capital for his business from abroad by way of capital importation.

Currency Swaps :   The customer may also wish to convert from one foreign currency to another i.e. from US dollar to Euro. In this case the Nigerian naira plays no part in the transaction. A cross rate is applied which indicated the prevailing value of one currency relative to the other. The customer may require this product if he is in possession of one foreign currency, but has to make payments in another foreign currency.

Forwards: A forward rate is a rate agreed upon by two counter parties to be used to convert one currency into another at a determined future date. The rate, once agreed upon is, binding on both parties.  The rate is not determined by chance. It is derived by use of a mathematical formula which takes into account the spot rate of the two currencies in question, the tenor of the forward and the interest rates prevailing in the two relevant countries.

Foreign Exchange Deposit Products

HYNIC the first and the largest deposit portfolio in the industry, offering tax efficiency and flexibility opportunities as well as negotiable certificates which are acceptable collaterals;

Primnote operates on a discounted basis, rediscountable with a flexible tenor. It is an opportunity that First City offers investors, to invest in high quality investment papers issued by customers of the bank and sold to CSL Stockbrokers Limited.

Florins (Floating Rate Investments) compensate investors for opportunities lost during a period of rising interest rates. This is achieved through a series of re-pricings benchmarked to specific tenor-NIBORS over the tenor of the investment. FCMB Florins sets a floor rate, protecting the investors under conditions of falling interest rate.