Functions Of a Banks Foreign Exchange Department

Here is a delineation of the important functions performed by the foreign exchange departments of the commercial banks.

Export	1. Pre-shipment advances 2. Purchase of foreign bills 3. Negotiation of foreign bills 4. Export guarantees 5. Advising/confirming Letters of Cresit 6. Advance for deferred payment exports. 7. Advance againts bills for collection
Import	1. Opening of Letter of Credit 2. Advance bills 3. Bills for collection 4. Import loans and guarantees
Remittances	1. Issuance of DD, MT, TT, etc. 2. Payment of DD, MT, TT, etc. 3. Issuance and encashment of travellers. 4. Sale and encashment of foreign currancy notes. 5. Non-resident accounts
Dealings	1. Rate Computation. 2. Maintenance of foreign currancy accounts. 3. Forward contracts. 4. Exchange possition and cover operations
Statisticso	1. Submission of returns. 2. Collection of credit information.