info

2. CURRENCY
Refers to a generally accepted medium of
exchange
Usually the coins and notes of a particular
government, comprising the physical
aspect of a nation’s money supply

3. CURRENCY EXCHANGE POLICY
All other foreign currencies
transaction should then be
directed to the bank located
opposite the hotel

4. OBJECTIVE
Company enters into foreign
exchange contract to protect its
financial performance from the
adverse effects of foreign
currency fluctuations

5. PURPOSE
To ensure foreign exchange are handled
in the most efficient manner
To ensure staff recognizes different
types of foreign currencies accepted by
the designated bank to be exchanged in
the hotel

6. NEED FOR REVIEW
OF POLICY
Remains consistent with the overall
objectives of the company and with current
financial trends
Reviewed and monitored by the Investment
Review Committee, consisting of Chief
Executive Officer, Chief Financial Officer and
Treasurer

7. RESPONSIBILITIES OF CHIEF FINANCIAL
OFFICER (CFO)
Review and
approval of the
company’s
Foreign
Exchange
Policy
Review, with
the Investment
Committee, of
each Foreign
Exchange
Position and
monthly
reports, for
Foreign
Exchange
Advance
approval of
Foreign
Exchange
Transactions,
that are not
consistent with
the guidelines
prescribed in
this policy

8. RESPONSIBILITIES
OF TREASURER
Review and
approval of
company’s foreign
exchange policy
Review of each
foreign exchange
position and
monthly reports
Approval of all
relationships with
banks and other
financial institutions
for conducting foreign
exchange business
Recommend
appropriate hedging
strategies and
instruments

9. CASH TO
CASH
TRAVELER’S
CHEQUE TO
CASH
CREDIT CARD
TO CASH
ATM CARD TO
CASH
TALENT TO
CASH
CURRENCY EXCHANGE POLICIES

10. CURRENCY EXCHANGE RATE
Exchange
Rate
between two
currencies is
the rate at
which one
currency will
be exchanged
for another
Also
regarded as
the value of
one
country’s
currency in
terms of
another
currency
Also
known as
Foreign
Exchange
Rate or
Forex Rate
Exchange
Rates are
determin
ed in the
Foreign
Exchange
Market

11. CURRENCY
EXCHANGE RATE
SPOT
EXCHANGE
RATE
FORWARD
EXCHANGE
RATE
Refers to the
Current Exchange
Rate
Refers to Exchange Rate
that is quoted and
traded today but for
delivery and payment
on a specific future date

12. CURRENCY CONVERTER

13. RETAIL EXCHANGE MARKET
Different buying rate and
selling rate will be quoted
by money dealers
Buying rate is the rate
at which money
dealers will buy
foreign currency
Selling rate is the
rte at which money
dealers will sell the
foreign currency

14. Quoted rates will incorporate an
allowance for a dealer’s margin in
trading, or else the margin may be
recovered in the form of a commission or
in some other way.
Different rates may also be quoted for
cash (usually notes only), a documentary
form (usually travelers cheques) or
electronically (such as a credit card
purchase). The higher rate on
documentary transactions is due to the
additional time and cost of clearing the
document, while the cash is available for
resale immediately. Some dealers on the
other hand prefer documentary
transactions because of the security
concerns with cash.

15. What to do with
left over currency

16. Points to remember while
exchanging currency in India
Always exchange foreign currency at authorized dealers.
Most banks are also authorized to deal in foreign exchange.
 Insist on currency exchange receipt. This proves the
source of your fund in India.
Please be aware of fake Indian currency notes like 500
rupee notes are said to be circulating in India.
Do not fall victim to people trying to entice you by saying
they will give you a better exchange rate than what the
banks may offer you.

17. Currency exchange receipt will enable you to reconvert
your left over Indian currency back to foreign currency at
the airport.
 Do not purchase foreign currencies form local residents.
Buying foreign currency from unauthorized places is also
illegal.
Do not buy anything online when using a computer in a
cyber café.
Use only a secure computer when logging on to do your
banking.