Foreign Exchange 

and Money Market Operations 

• Deals in all the major currencies, their crosses and the Indian Rupee.

• Quotes very fine rates of conversion to corporate for conversion of their export   proceeds into JPY or their remittance in Indian Rupees or other currencies.

Customers

The branch undertakes to carry out varieties of Foreign Exchange operations on behalf of its customers.

  The branch quotes very fine rates for Indian Rupees, USD and other major currencies for all the customer transactions. The branch undertakes buying and selling of the major currencies both in spot and forward periods for their genuine commercial/trade transactions.

Forward Contracts

 Exporters can book forward contracts for their export proceeds expected to be received at a future date.  That is they can agree to sell their foreign currency to the bank in exchange for Yen (local Currency) on the date the export proceeds will be received. In case the exporters are not sure of the exact date on which the export proceeds will be received, they can book what is known as an option forward contract. In this forward contract the exporter can give a period within which the export proceeds are expected to be received, say between 1^st September and 15^th September and agree to deliver the foreign currency to the bank on any day during this period.  In this case yen being at a premium against USD due to its lower interest rate regime the premium to the last date of the contract would be charged from the customer and the rate quoted accordingly.

The reverse would be applicable for the importers and the premium up to the starting date of the contract will be paid to him. Just as in the case of an exporter, an importer can also book a forward contract for purchase of the foreign currency from the bank to effect his import payment on the due date. Like an exporter an importer can also book an option forward contract with the bank and the premium will be paid to him as mentioned above.

An exporter or an importer can also cancel a forward contract in case he is not able to or does not want to execute the contract for various reasons he can do so. The rates will be charged from the customer at TT selling rate in case of an exporter and TT buying rate in case of an importer, if the cancellation is done with in the option period. The bank will take nominal handling charges from the customer for this transaction. The profit or loss from the transaction due to fluctuation in rates will be passed on to the customer provided the customer cancels the contract prior to the expiry of the contract.

  Forex Terminology

Contact

Tokyo Branch

Mr. S.K.Sinha 

03-3284-0092

03-3284-0093

sbitok@gol.com

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Osaka Branch

Mr. Pratyush Bakshi

06-6271-3237

sbiosaka@gol.com