Foreign Currency Accounts

If you regularly make and receive overseas payments, a Foreign Currency Account can make life simpler. 

It lets you hold funds in your overseas currency, and make and receive payments without converting them first. It saves you exchange rate fees, and helps you manage your costs when exchange rates change. 

Topping up your account or converting funds to New Zealand dollars is as simple as making an online fund transfer using our Financial Markets Online module. We quote a rate for conversion which you can accept or decline.

Foreign Currency Term Deposits

If you're holding foreign currency for a future requirement, depending on the currency you can park the funds in an ASB Foreign Currency term deposit. You earn interest on the funds, and usually at a higher rate than in a standard Foreign Currency Account. 

Forward Exchange Contracts

Forward Exchange Contracts (FECs) let you lock in a rate for a future transaction. You choose the date and amount, and we provide the exchange rate. You can then proceed with certainty, knowing that your rate is locked in and can’t be affected by exchange rate changes.

Remember, the FEC is locked in. You have to proceed with the deal even if the exchange rate on the day is better than your agreed rate.

We may agree to terminate an FEC prior to the maturity date, but we are not required to do so. Early termination may result in you suffering a loss depending on the prevailing exchange rate.

Foreign Exchange Options

An alternative to a locked in Forward Exchange Contract (FEC) is a Foreign Exchange Option (FX Option). Like an FEC, you choose a date, a currency and an amount, and we set an agreed exchange rate, sometimes called a 'strike rate'.

But unlike an FEC, an FX Option gives you the best of both worlds. On the transaction date you can choose to keep your agreed exchange rate, or back out of the deal if the exchange rate moves in your favour.

The only difference is that you pay a non-refundable premium upfront for an FX Option – this can be especially useful in volatile markets.

Foreign Exchange Orders

A Foreign Exchange Order (FX Order) lets you create an automated deal at an exchange rate and amount to suit you. When the rate reaches your chosen level, we automatically execute your order.

We monitor FX Orders from market opening on Monday morning NZT to Friday afternoon New York time.

Call Level

If you'd prefer to confirm your currency deal before it happens, a Call Level is right for you. You set your target exchange rate, and we monitor the markets. When the exchange rate hits your target, we confirm your order with you via phone or email before executing it.