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Corporate Treasury Solutions

Foreign Exchange

With a strategic, integrated and tailored approach, we support multinational corporations in managing risk and optimise liquidity for the future.

Services Offered

Over-the-Counter Transaction

Over-the-counter (OTC) telegraphic transfers, demand drafts and currency notes at branches.



Spot Contract

Buy or sell foreign currency with the Forex Spot Contract, with settlement of transaction in two trading days.
E.g. A Spot Contract transacted on Monday will reach settlement on Wednesday.

Shariah-compliant Spot Contracts are also available.

 

Forward Exchange Contract

Hedge against future rate exposure on receivables or payables in other currencies with the Forward Exchange Contract (FEC). This is an agreement to buy or sell currencies at a future date (more than two trading days) at a predetermined price, which can be a premium (higher than spot rate) or discounted (lower than spot rate) depending on the interest differential between the two currencies.

 

Non-Deliverable Forwards

Non-Deliverable Forwards (NDF) work like forward contracts, except that they do not require any physical delivery of the non-convertible currency and is settled in cash.

NDFs are used to hedge the following currencies:
• Indian Rupee (INR)
• Indonesian Rupiah (IDR)
• Chinese Yuan (CNY)
• New Taiwanese Dollar (TWD)
• Philippine Peso (PHP)
• South Korean Won (KRW)

 

Currency Option

Currency Option Contracts are typically offered in two forms, Calls and Puts:

  • A Call Option Contract gives the holder the right, but not the obligation to buy a commodity at a specific price (strike price) on or before its expiration date.
  • A Put Option Contract gives the holder the right, but not the obligation, to sell at the strike price on or before its expiration date.

The options are classified as either American or European Options:

  • American Option: May be exercised at any time before the expiration date.
  • European Option: Can only be exercised on the expiration date.

 

Benefits:

  • Hedges against foreign exchange rate risk from import or export of goods, foreign investments or funding in any currency.
  • Protects against adverse movements in foreign exchange rates, while reaping the benefits from its favourable movements.

 

FX Global Code Disclosure Notice

Malayan Banking Berhad (acting through its various branches and affiliates, "Maybank") would like to highlight certain matters relating to Maybank's role in foreign exchange ("FX") markets and to disclose relevant practices of Maybank when acting in the FX markets.

This disclosure notice is part of Maybank's effort to provide transparency to its FX customers on its business practices. To the extent that customers continue to enter into FX transactions with Maybank, it will be on the basis that they have read and understood the following.

For more info, please refer FX Global Code Disclosure Notice here.