Wachovia offers a PC-based draft service, as well as traditional and remote draft issuances. Nearly any size of currency transaction can be insulated from currency fluctuation for maturities up to two years . Integrated Payables - Wachovia's Integrated Payables helps you streamline operations and lower costs, while gaining flexibility, security and quality service from a committed partner . You can initiate ACH, check, foreign drafts, as well as domestic and international wire payments, with one payment instructions file. Knockout Options - This type of option, which is deactivated at a predetermined level, can be tailored to a customer's currency view or budget rate .
Knockouts require a smaller premium than a standard option.
Wachovia handles all account openings, foreign exchange conversions, funds transfers, information reporting, customer service, pricing and billing. Local financing also can be arranged through Wachovia, reducing time, documentation and, possibly, borrowing costs. NDFs are a useful alternative for hedging currency exposure in illiquid or highly regulated markets . Because there is no delivery of the foreign currency at maturity, only the gain or loss in the home currency would be recognized. Pricing is usually based upon supply and demand, rather than interest rate differentials.