Currency Settlement

When a seller specifies a currency for payment in the contract, and it differs from the buyer’s preferred currency, our platform handles the currency conversion at the current market rate, facilitating smooth and secure settlement.

Synopsis

The African Commerce Bank’s currency settlement service allows sellers and buyers to conduct trade seamlessly, even when their preferred currencies differ. This service ensures that cross-currency transactions are completed efficiently, accurately, and transparently. When a seller specifies a currency for payment in the contract, and it differs from the buyer’s preferred currency, our platform handles the currency conversion at the current market rate, facilitating smooth and secure settlement.

This approach provides both parties with the flexibility to trade across borders without the need to manage foreign exchange, ensuring that the seller receives payment in their desired currency while the buyer pays in their chosen currency. Below is a flowchart that illustrates the currency settlement process on our platform.

Visual Diagram

Step-by-Step Breakdown of the Currency Settlement Process

1. Contract Agreement: The seller and buyer agree on the contract terms, with the seller specifying the preferred currency for payment.
2. Vendor Payment in Chosen Currency: The buyer initiates payment in their chosen currency, which may or may not align with the seller's preferred currency.
3. Currency Match?: Our platform checks whether the buyer’s payment currency matches the seller’s specified currency in the contract.
4. Direct Transfer to Supplier (if currency matches): If the buyer’s payment currency matches the seller’s preferred currency, the funds are transferred directly to the seller.
5. Currency Conversion Process (if currency does not match): If there is a currency mismatch, our platform initiates a conversion process to ensure the seller receives payment in their preferred currency.
6. Current Market Rate Conversion: The buyer’s funds are converted to the seller’s specified currency at the current market exchange rate to maintain fairness and accuracy.
7. Transfer to Supplier in Preferred Currency: The converted funds are then securely transferred to the seller in their desired currency.
8. Transaction Completed: The currency settlement process is completed, and both parties receive confirmation of the successful transaction.

Conclusion

This currency settlement feature ensures that currency preferences do not impede trade between sellers and buyers. By automatically handling conversions, our platform enables both parties to conduct transactions in their preferred currencies, reducing the complexities of currency exchange and promoting smoother, more flexible trade across borders.