FX Spot
Use the product to enable your enterprise meet its forex obligations sourced from interbank market. The enterprise will benefit by the fact that the loan has the shortest time frame, and it involves cash rather than a contract. Furthermore, Interest is not included in the agreed-transaction.
• A spot transaction a “direct exchange” between two currencies, has the shortest time frame, involves cash rather than a contract;
• Interest is not included in the agreed-upon transaction
• A spot transaction is a maximum two-day delivery transaction and Exchange rate is fixed upon market rate + the Bank’s spread. • 2 product types :
o FX Spot TZS / Foreign currency
o FX Spot Foreign Currency/ Other Foreign currency
• Main Foreign currencies :
o USD
o EUR
o GBP
o UGX
o ZAR
o KSHS
o TZS
o CAD
o CHF
o SEK • The product enable customers to meet their forex obligations sourced from interbank market which is most liquid and competitive
• Confirming letter signed by customer.
• Supporting import documents for deals above US$10,000.00 on remittance abroad
- Branch network
FX Forwards
We will provide you with 100% cover against future currency shift.
• A Forward transaction: A special type of foreign currency transaction based on an agreement between two parties to exchange two designated currencies at a specific time in the future longer than spot (2 days). This contract is used to primarily protect the buyer/seller from fluctuations in currency prices.
• The Interest rate differentials are factored into the contract price thus a premium or discount is included.
• The contract cannot be cancelled by either party.
• Should either party not honor the contract they will be liable for any Market losses incurred by the other party and Exchange rate is fixed upon Spot rate + Interest rate Differential + the duration of the contract. • 2 product types :
o Forward contract TZS / Foreign currency
o Forward contract Foreign currency / Other Foreign currency
• Main Foreign currencies :
o USD
o EUR
o GBP
o UGX
o ZAR
o KSHS
o TZS
o CAD
o CHF
o SEK
• Customer can hedge against future exchange rate movements at the time hence secure the profit margin.
• Confirmation letter from customer and or forward contract
• Reuters deal ticket for interbank counterparties
- Branch network
Call Deposit Account
Investment Fixed deposit account that doesn’t bind you, keep earning with flexibility of instant access to funds and unlimited withdraw and deposit.
A call deposit account is a bank account for investment funds that offers the advantages of both a savings and a checking account. Like a checking account, a call deposit account has no fixed deposit period, provides instant access to funds and allows unlimited withdrawals and deposits. The call deposit also provides the benefits of a savings account through the accrual of interest.
PRODUCT ATTRIBUTES:
• This product combines the convenience of current deposit and higher interest rate than that of current deposit.
• It is suitable for depositors’ customers who can’t decide the deposit term for the large amount of funds and make deposits and withdrawals frequently.
• Call deposit is available in various currencies (TZS, USD, EUR, GBP).
• Preferable for very short investment periods i.e. for a few days.
• Suitable when the funds can be required or called up anytime e.g. funds held on behalf of a client by a law firm.
• Has no defined investment period
• Funds can be invested and liquidated at any time without penalty. BENEFITS – CUSTOMER:
• Competitive interest rates on your deposits
• No restriction on number of deposits and withdrawals
• No period of notice of withdrawal is required
• Certificate of registration (Original & Photocopy)
• Memorandum and Article of Association
• Business License
• Minutes with resolution to open an account at BANK OF AFRICA-TANZANIA
• Letter of application for account opening
• TIN number and or VAT registration certificate
- Branch network
Primary Dealership
Our professional dealers will help you bid for Government Securities customers at competitive prices in both primary and secondary markets.
This involves biding for Government Securities on behalf of our customers at competitive prices in the primary and secondary market.
Features
• Treasury Bonds have a long-term maturity
• Treasury Bills have up to one-year tenors to maturity.
• Biding is done on discount value.
• Treasury Bonds have coupons while Treasury Bills have no coupons.
• Income depends on amount discounted. T/BILLS invested can be used as collateral for short term borrowing
The customer earns interest
Proper KYC done to the customer
Eligibility
All customers in banking relationship with Bank of Africa Tanzania
- Branch network
Currency Swaps
Seize the opportunity to enjoy funding at a reduced cost due to interest rate differential on use of excess funds resulting from Currency Swap. Companies can exploit global capital markets more efficiently by manipulating currencies.
• A Currency SWAP transaction: A swap involves the exchange of principal and interest in one currency for the same in another currency. It is an off balance sheet item.
• The Interest rate differentials are factored into the SWAP price thus a premium or discount is included.
• The contract cannot be cancelled by either party.
• Should either party not honor the contract they will be liable for any Market losses incurred by the other party
•Exchange rates are fixed using Spot rate + Forward rate. It can be used for managing cash flow mis-matches
Product Attributes
• 2 product types:
o SWAP TSHS / Foreign currency
o SWAP Foreign currency / Other Foreign currency
• Main Foreign currencies:
USD KSHS
EUR UGX
GBP CHF
CAD
ZAR The swap will make use the excess funds by giving customer an opportunity to enjoying funding at a reduce cost due to interest rate differential on pricing.
• Confirmation letter from customers
• Reuters deal ticket for interbank counterparties
• Documents as per approved checklist
- Branch network