partially convertible currency

A partially convertible currency is the monetary unit of a country where holders of the currency face legal constraints to convert it freely at the going exchange rate into other currencies. A currency is said to be partially convertible if one or more of the following three criteria about usability, exchangeability and market value are […]

payment automation

Payment automation refers to a system for processing payments through software technology with minimal or no manual interaction. Payments Automation for International Businesses International companies often rely on a global supply chain or have an extensive network of foreign suppliers. These practices may involve significant amounts of international payments, demanding a good deal of time […]

payment file

A payment file or a ‘batch payment file’ is a document that specifies the details of each of the individual payments in a payment batch. A payment file contains all the information necessary to process a money transfer: the payer and beneficiaries’ account numbers, the amounts, pay-in and pay-out currencies, payment reference and other relevant […]

payment netting

Payment netting is a procedure to settle transactions while minimising the need for funds to actually change hands. An asset manager may be ‘long’ Credit Default Swaps on Company A and ‘short’ on Company B. Instead of making payments for one position while receiving payments from the other, the payment can be ‘netted out’ to […]

payment processing software

The category of payments processing software includes an extensive range of systems that allow companies and individuals to send and receive payments automatically. Within payments processing software, there are two main groups: B2C and B2B payment solutions. B2C Payment processors are mainly payment gateways that allow merchants and e-commerce companies to process payments from their […]

payment reconciliation software

The category of payment reconciliation software comprises a wide range of technological solutions to automate bank and intercompany reconciliation processes, credit card matching and invoice-to‑PO matching in order to simplify payment reconciliation. It is impractical for e-commerce companies, marketplaces and, in general, businesses processing significant volumes of daily transactions manually,  undertaking all the administrative tasks […]

pegged exchange rate

A pegged exchange rate, also known as a fixed exchange rate, is a currency regime in which the country’s currency is tied to another currency, usually USD or EUR. The purpose of a pegged exchange rate is to stabilise the value of the local currency, keeping it at a fixed rate in order to avoid […]

plain vanilla

Plain vanilla is a term used to describe a financial instrument with no unusual features. The simplest forward, options and swap contracts are all examples of plain vanilla financial instruments. Thanks to their simplicity, they are generally cheaper than non-plain vanilla products. Plain vanilla forward contracts, such as Outright Forwards and Open Forwards are the […]

points forward

Les points forward reflètent les écarts de taux d’intérêt entre deux devises dans un contrat forward (contrat à terme) qui est un accord permettant de compenser le risque de taux de change. Dans les contrats forward, les points forward sont les points de base qui sont déduits ou ajoutés au taux spot (taux actuel) afin […]

pre-transaction risk

Pre-transaction risk comprises the firm’s operational and currency risk before a transaction is committed. From the operational point of view, pre-transaction risk starts with the process of collecting and monitoring the firm’s FX exposure. Is the process of collection exposure timely, relevant and accurate? Are currency markets monitored with manual or automated processes? In terms […]