Rates of Determination
Foreign exchange rates constantly vary. For this reason, Jalandoni and Company has a firm policy regarding the foreign exchange rate to be used. In order to keep strong business relationships and avoid unnecessary misunderstandings, Jalandoni and Company gives their clients two rates of determination to choose from. Both rates are dependent on the so-called “rate of the day” (the present foreign exchange rate) and the “ time of confirmation” (the moment your money transfer order is received and paid).
Fixed Rate
In fixed rate, the foreign exchange rate that will be used for the money transfer transaction will be the rate of the day at the time of confirmation.
Open Rate
The rate that will be used in calculation is the rate of the day at the time of transfer.
Explanation through example:
For instance, you deposited 500 AUD in Jalandoni and Company’s bank account; however, you need the money to be transferred a week from the time of your deposit. At the time of confirmation, the rate of the day is 1 AUD = 38.8 PHP. If you choose fixed rate, this means that the exchange rate that will be used in calculation is 1 AUD = 38.8 PHP. It doesn’t matter whether the value dips or rises at the time of transfer.
On the other hand, if you choose open rate, the rate that will be used in calculation is the rate of the day at the time of transfer. So if seven days later, the current foreign exchange rate is 1 AUD = 40 PHP, this will be the rate used.