What is a Foreign Exchange Bank?

Business entities in the financial sector that regulate the circulation of foreign exchange, foreign payment instruments.”

Indonesia Dictionary

“Commercial banks that can carry out activities in foreign currencies by meeting the conditions set by Bank Indonesia.”

Financial Fervices Authority

What is a Foreign Exchange Bank?

Foreign Exchange Bank comes from the word bank and foreign exchange . A bank is a business entity that collects funds from the public in the form of deposits and distributes them to the community in order to improve the lives of many people. While foreign exchange is all objects that can be used as a means of payment abroad and can be accepted internationally.

Foreign exchange banks can offer bank services related to foreign currencies such as overseas transfers, foreign exchange buying and selling , import export transactions , and other foreign exchange services.

Duties and Roles of Foreign Exchange Banks

Duties of the Foreign Exchange Bank

  • Receive foreign currency savings
  • Send and receive foreign currency transfers and collections
  • Buying and selling foreign exchange, also known as foreign exchange
  • Serving the opening and payment of L / C
  • Serving payment traffic at home and abroad

 

Role and Foreign Exchange Bank

Foreign exchange banks play a role to raise public funds. In addition, foreign exchange banks have many roles in payment traffic, because foreign exchange banks provide more services to customers.

Foreign exchange banks generally play a role in the implementation of foreign transactions undergoing several stages, as follows:

  1. The importer submits an application to the L / C opening bank before making a transaction to the exporter.
  2. L / C bank opens L / C at the place of exporter.
  3. The advising bank continues the L / C.
  4. The exporter prepares the goods to be sent.
  5. Receipt of documents upon delivery

Sources of Funds Obtained by Foreign Exchange Banks

  1. Export trade transactions, both from the export of goods and services
  2. Proceeds from foreign investment
  3. Income from Indonesian workers from abroad
  4. Tourism
  5. Foreign loans

List of banks that provide foreign exchange

  1. Bank Negara Indonesia
  2. Bank Rakyat Indonesia
  3. Bank Mandiri and Bank Syariah Mandiri
  4. Bank Central Asia
  5. Bank Bukopin
  6. Bank Danamon
  7. Mega Syariah Bank Indonesia
  8. Mega Bank
  9. Bank OCBC NISP
  10. Bank Permata

And various other banks

 

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