FX rate fixing: Can You Guarantee Rates to the Beneficiary?

The question in full

This requires either a pre-funded local currency account in the destination country or a contractual 'Locked Rate' from a liquidity provider. This guide explores how FX rate fixing works in cross-border payments and explains Faisal Khan & Co.'s specific role in negotiating these treasury spreads and selecting the right liquidity partners for your corridor.

Answer

If you bring in your own payout network/partner, and such a payout network/partner would have a correspondent tie-up agreement with the PLH (Principal License Holder) in the UK/EU, then the FX price, gains, etc. are all set by you. If you do NOT bring in your own payout network/partner, then the FX, etc. are all set by the PLH. Your commission would be governed by the wholesale price they offer in the package, which you would be accepting.

May I humbly request you watch these two videos? They explain the concept of what correspondent tie-up agreements are – very well.

Can we fix the rate entirely throughout the chain till the beneficiary? What role does your company play in the FX rate fixing?

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