BofA launches guaranteed FX rates with up to a 1-year tenor

The 1-year tenor is available in 37 currency pairs.

Bank of America (BofA) has introduced guaranteed FX rates of up to 1-year.

Touted as the longest tenor available in the industry, the year-long FX rates are aimed at simplifying the management of FX risk associated with cross-currency payments and receipts, BofA said in a press release.

The 1-year tenor is available in 37 currency pairs. 

“When FX risk is managed appropriately and efficiently, it can bring enormous value to companies that process large volumes of cross-border payments,” said Bhupen Velani, head of transactional FX trading in global markets at Bank of America. 

Velani shared that BofA had seen an increase in cross-border payments, which in turn has raised the appeal to lock in FX rates with longer tenors.

“For corporate treasurers, volatile FX markets exacerbate the challenge of cash flow forecasting,” said Daniel Stanton, head of Transactional FX in Global Payments Solutions at BofA. 

“Securing guaranteed FX rates of longer tenors can help them improve forecasting, which will lead to better informed decision-making,” Stanton added.

The year 2024 marks the 8th year since BofA launched guaranteed FX rates beyond a 24-hour tenor.

Clients who went live with Guaranteed FX rates in 2024 account for over 20% of year-to-date volume growth, according to BofA.

Currency pairs with the most notable volumes include USDMXN, EURUSD, USDCAD, GBPUSD, EURCZK, AUDUSD.