FX rates and bank spreads
FX rates and bank spreads, compared before you book
Your AD banks quote a different margin on the same day. FxLayer compares each rate with the interbank mid-rate, shows the spread and the cost of each route in rupees, books the deal on the request and stamps the rate on the remittance.
No card needed.
How it runs
From a quote to the remittance
Your banks' rates
Each AD bank priced from the source you set: a spread over the mid, its card rates, or its API.
Compared with the mid
The spread and the cost of each route in rupees, with the cheapest route flagged.
Deal on the request
One deal can cover the whole payment request, across several records.
Rate on the remittance
The booked rate is stamped on the remittance and kept in the rate history.
The FX board
- Rates from each AD bank: a spread over the mid-rate, the card rates you enter, or the bank's API where FxLayer connects to it: HDFC's live rate, and Axis's rate and deal booking.
- The cheapest route: flagged per currency and amount, with what the month would have cost at the worst quote.
- Forward contracts: the forward contract reference on the remittance, so a hedged payment settles at the booked rate.
- Rate history: every booked rate kept on the board, for you and your auditor.
FX risk pack (add-on)
- The UFCE statement: unhedged foreign currency exposure for each bank, under RBI's UFCE Directions, 2022, from your open position and borrowings.
Guides for FX rates and bank spreads
The hidden cost in every foreign payment: the bank's spreadBanks convert foreign payments at a rate with a margin over the market rate. How to measure the spread, compare your AD banks and negotiate a better rate.Your AD bank: the gatekeeper for every foreign trade paymentAuthorised dealer (AD) Category I banks handle foreign exchange for RBI. What your AD bank checks, reports and closes, and how to get requests through faster.Form A1 or Form A2: which application does your bank need?Form A1 is the bank application for paying for imported goods; Form A2 covers other outward remittances like services. The difference and what goes with each.
Alongside FX rates and bank spreads
Three neighbouring parts of the platform. Each has its own page.
Questions
The gap between the rate your bank applies and the mid-market rate at that moment. On large import or export payments it usually costs more than the bank charges shown on the advice.
Each AD bank's rate comes from the source you set for it: a spread over the mid-rate, the card rates you enter, or the bank's API where FxLayer connects to it. The mid-rate is a reference, not a rate you can deal at.
Where the bank's API offers deal booking, as Axis's does, the deal can be booked from the board on your own credentials. Otherwise you book with the bank as usual and record the rate, which is stamped on the remittance.