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Foreign Exchange Services

U.S. Bank has extensive expertise analyzing market developments and tailoring foreign exchange products to meet your needs. We can assist you with managing the risk of foreign exchange, maintaining foreign currency accounts and updating your organization on foreign exchange markets.

Risk Management and Hedging

Risk Management
Risk identification is the first step in evaluating foreign exchange exposure. U.S. Bank can help identify and analyze both hidden and overt risks:

  • Translation Risk - assesses accounting-based issues stemming from the translation of financial statements from one currency to another
  • Transaction Risk - looks at potential gains and losses on a given transaction susceptible to foreign exchange rate movements
  • Sovereign Risk - examines political risk, the stability of foreign governments and maintenance of favorable relations with the United States
  • Exchange Risk - covers government exchange controls, availability and the transfer of "hard currency" out of the foreign country
  • Economic Risk - gauges whether a competitor will set prices in local currency over U.S. dollar pricing

Hedging Alternatives
To limit your exposure to changes in foreign exchange rates, U.S. Bank offers a variety of hedging alternatives which include the following:

  • Forward Contract - allows the outright purchase or sale of a foreign currency for a date in the future
  • Investing or Borrowing in a Foreign Currency - creates a future receivable or payable that might offset other exposures in that currency by investing or borrowing in a foreign currency
  • Call or Put Option - ensures the buyer of the option to purchase or sell a currency at a fixed rate without the obligation to do so. The buyer pays a premium for that privilege. (A good choice for a contingent liability or to provide protection with the opportunity for gain.)
  • Range Forward - lets you profit on currency moves up to a predetermined level, while limiting your risk of downward movement by committing to exchange currencies within a band of rates at a set time in the future

Executing Foreign Exchange Transactions on the Internet
U.S. Bank offers secure, Internet-based execution of foreign exchange transactions, transmission of settlement instructions, online confirmation and reports on historical and outstanding contracts via U.S. Bank Foreign Exchange Web (FX Web).

U.S. Bank Foreign Exchange seminars offer both new and seasoned foreign currency managers valuable insights into day-to-day foreign exchange trading. Seminars are designed for importers, exporters, corporations with overseas subsidiaries or companies considering acquisitions or divestitures in foreign currencies. Seminars are offered several times per year at various U.S. Bank locations. We also offer Foreign Exchange Options Seminars that cover basic option theory and the practical use of derivative strategies.

Our FX specialists are located in regions throughout the country to assist you with your foreign exchange needs.

For more information on U.S. Bank Foreign Exchange Services, please contact a Foreign Exchange Services location near your area.

Notice: Foreign-denominated funds are subject to foreign currency exchange risk. Customers are not protected against foreign currency exchange rate fluctuations by FDIC insurance, or any other insurance or guaranty program.

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