Citizens Bank Foreign Exchange Business Solutions

If you are a business owner or manager, we can help you understand how and why the Canadian dollar fluctuates versus other major world currencies—and what you can do with that information in order to minimize your company’s risk from foreign exchange currency fluctuations. This knowledge can help you feel more confident about your business decisions and minimize the risks that are a natural part of doing business globally. We offer a wide spectrum of foreign exchange business solutions, including:


Sending and receiving payments

Citizens Bank Account Managers can help you send or receive payments to or from more than 200 countries and territories—efficiently and inexpensively.

Incoming payments

Make business transactions easier for your clients. We can talk to you about the best way to arrange for them to pay you in their own currencies, whether via electronic funds transfer or cheque-conversion services. We can also help you lock in foreign exchange rates for future payments.

Outgoing payments

If you need to make payments to businesses overseas in foreign currencies, Citizens Bank Account Managers can help you manage your exposure to fluctuations in the foreign currency market. We can help you access informed risk management, reduce your costs and streamline your payment processing.


Managing foreign exchange risk

Currency risk can be a natural part of doing business internationally. But there’s no need to take unnecessary risks. Our Account Managers can help. We’ll start by working to understand your business risk profile and individual foreign exchange risk exposure. These will help in developing a risk management strategy that will help protect you against fluctuations in foreign currencies that could negatively impact your business.

Empower yourself

We'll share our expertise so you can make informed decisions on how to manage your foreign currency exposures effectively. Through our full service approach, we will:

  • Provide up-to-date market intelligence based on our insight and technical data.
  • Share with you the expected outlook for global currencies. By focusing on the currency pairs that matter to you most, we can advise you on the best way to manage your currency exposures – through the spot market or a hedge strategy.
  • Allow you to set a rate for buying and selling currencies. We can monitor trades for you 24 hours a day to ensure we fill your order if the rate you set is reached.

Save money and time—and gain confidence

foreign exchange hedge process

Managing your currency risk can provide you with both protection and certainty.

You can manage your business with confidence knowing that you are protected from adverse movements in rates. Our customized foreign exchange solutions not only save you time, but give you the peace of mind that comes from knowing your foreign exchange risks have been properly managed.

Knowing that Citizens Bank Account Managers are managing your currency risk lets you focus more on your business.


Citizens Bank of Canada risk management tools

Hedging

Hedging strategies are meant to protect you from unfavourable changes in foreign exchange rates. They most often take the form of contracts (such as forward contracts) designed to reflect your individual goals, risk tolerance and desired level of protection.

Citizens Bank Account Managers can develop a hedging strategy for you based on your specific risk profile and business liquidity needs.

Spot transactions

A spot transaction involves exchanging one currency for another at the prevailing exchange rate and completing the transfer within two business days.

Citizens Bank Account Managers can help you determine the best spot exchange rate to settle on, so you can trade a foreign currency at the best rates available for your immediate needs.

Forward contracts

You can use a forward contract to lock in the current rate for a currency exchange you want to make in the future (before the maturity date), gaining protection from fluctuating rates on future purchases or trades. Your Citizens Bank Account Manager can explain these choices to you in more detail and help you set up a contract to suit your individual needs.

Market orders

As soon as it is placed, a market order remains good until it is filled or cancelled, and is priced using the current spot (or market) price. Market orders placed with a Citizens Bank Account Manager will be monitored 24 hours a day on live markets 5.5 days a week. Where your preferred rate has traded, it will be executed (for amounts over 100,000).

Take-profit orders

A take-profit order lets you specify the exact rate at which to sell through a spot or forward trade to realize a profit. Once the currency pair position rises to your specified threshold, the order is executed and your profits realized.

Citizens Bank Account Managers can help you arrange take-profit orders to lock in profits when you are not available to monitor your open positions.

Stop-loss orders

A stop-loss order is a defensive mechanism you can use to lock in your least favorable exchange rate in case the market moves against you. It automatically closes an open position when the exchange rate drops to the level you specify.

Citizens Bank Account Managers monitor the market 24 hours a day, 5.5 days a week, and can automatically lock in the stop loss exchange rate set if needed.

Order cancels other

An order cancels other (OCO) combines a pair of orders—usually take-profit and stop-loss orders—and automatically cancels one if the other is executed. This protects you against any risk of your order being double booked.

Citizens Bank Account Managers are happy to advise you when an OCO is best used.


Settlement options

Citizens Bank of Canada has partnered with many major banks to offer you a wide range of payment methods in which to settle. For example, we provide:

  • Electronic settlement at other financial institutions
  • Same-day trade and settlement
  • Same-day cheque-exchange settlement

Market monitoring and overnight orders

Think of Citizens Bank Foreign Exchange as a partner in your business. We closely monitor trends that could have an impact on the foreign exchange market and consequently on your business. We also provide you with up-to-date FX information to help you make the best financial decisions for your business.

You can place daytime or overnight market orders with us, and we will execute them if your target rate is met. We accept daytime orders until 5 PM PT and overnight orders until 3 PM PT. Once placed, orders are considered “good until cancelled.”


Multi-currency bank drafts

We can help you arrange to pay a bill or a vendor in their home country currency. We can issue foreign currency cheques in several currencies and clear foreign-denominated cheques through our international network of banking partners.