Online global payment system promotes informed decisions

The US dollar is still darling of SA firms, according to the currency specialists at Bidvest Bank. You should forget doubts about the continued role of the US dollar as the world’s reserve currency. “The greenback remains the darling of local business,” the specialists’ report said. This dollar pre-eminence was one of the key findings of an in-depth study by the bank into the preferences of its corporate customers, and new trends in currency volumes following the national treasury’s recent liberalisation of foreign exchange controls. The bank conducted the research ahead of the relaunch and rebranding of its online global payment offering in early July – in collaboration with its partners at Travelex, the global foreign exchange specialists. “There may be a steady increase in trade volumes and business travel to Asia, but US dollars remain our most actively traded currency,” says Ion De Vleeschauwer, chief dealer at Bidvest Bank. “Last year we added the Chinese yuan to our range of more than 60 currencies. Our relationship managers have also alerted corporate clients to our facility for transacting directly in the home currency of their offshore customers without the need for preliminary dollar holdings. “However, the habit of buying dollars and holding the greenback in corporate foreign currency accounts seems hard to shake.” De Vleeschauwer also noted that this recent launch of the rebranded online global payment system “is a further opportunity for our relationship managers to engage with corporate clients on issues such as this.” The system, according to Bidvest Bank MD Alan Salomon, must not be seen as offering advice on where the rand will take a position against other currencies, for example. Rather it is a platform to access information wherever a user is – in the office, at home or at an airport. “We’ve taken it to another level,” said Salomon. “The sophistication is there but it’s simple (to use). “On foreign exchange we tell importers and exporters to make their own decision, but to get as much information as they can before making it.” The internet-based platform is installed for free at a corporate client’s offices or from anywhere offering secure internet connectivity. Clients only pay when they put through a transaction, and there are no licence fees. User training is also free. The bank stressed that the system set-up was nondisruptive, took only 48 hours, and required no software installations on a client’s own computer system. In addition to global payments, the system enables users to place and price orders for foreign exchange online, receives online confirmation of transactions, facilitates forward cover, enables selfcompletion and printouts of statutory forms, and provides news and information on foreign exchange and currency markets.