A Current exchange rate (Indicative rate) refers to a preliminary or estimated rate displayed before a currency conversion is executed. It is provided for informational purposes only and is not guaranteed until the conversion is confirmed.

When you give us an instruction for a Currency Conversion in the future, we will display a current exchange rate based on current market conditions. This rate is not the same as the market exchange rate and may change frequently. The actual rate applied to your conversion will be confirmed on the date that the conversion is scheduled.

Key Points About Current Rates

• Market Fluctuations Current rates reflect real-time market conditions and can change frequently due to supply and demand for currencies.

• Not Guaranteed Unlike guaranteed rates, current rates are not locked in. The actual rate applied to your conversion may differ from the current rate shown.

• Informational Only Current rates are displayed alongside other relevant information during the payment or conversion process. This is to help the customer understand roughly how much money is going to be involved in both the from currency and the To currency for informational purposes only.

Future-Dated Conversions

When you choose to set up a conversion for a future date (without using a forward contract), OFX will display the current current rate at the time of setup. However, this is not the rate that will apply to your conversion.

• The actual exchange rate will be determined at 12:00 AM local time on the date you selected for the conversion.

• This means the rate can change between the time you schedule the conversion and the actual execution date.

Why Schedule a Future Conversion?

Companies often set up future-dated conversions for practical reasons, such as:

• Upcoming Supplier Payments A business knows it has to pay an overseas supplier in 30 days and wants to schedule the conversion now for convenience.

• Budget Planning A company wants to align its currency conversion with a planned expense in the next quarter to manage cash flow.

• Invoice Settlement A client has received an invoice due in two weeks and prefers to create the payment process early, even though the rate will be applied later.

Next Steps:

1. Review the current rate provided before proceeding with confirming payment. Refer How do I create a payment?

2. A future payment will show CURRENT RATE while making a payment.

   

3. While payment on the current date will show GUARANTEED RATE.

   

Related Articles:

What are my FX rates?

What is a guaranteed rate?

How do I create a payment?