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With our glossary you can find the most frequently used terms in foreign exchange
What is foreign exchange hedging?
Currency hedging is a financial strategy that allow corporations to protect themselves from foreign exchange volatility.
One example is of currency hedging is a foreign exchange forward agreement. This allow clients to fix an exchange rate for a future date, and upon expiration of the agreement, settlement occurs at the difference between the contracted rate and the reference market rate.
What is SWIFT or BIC?
SWIFT was created by the Society for Worldwide Interbank Financial Telecommunication, and for that reason it has this acronym, it is also known as BIC: Bank International Code. The purpose of a SWIFT or BIC code is to identify the banking institution using a unique universal code, which can be between 8 and 11 characters long. Be aware that financial institutions according to the segment or operation area may have more than one SWIFT or BIC code.
The BIC or SWIFT consists of 8 or 11 characters, and:
The bank code, defined in four unique characters
The country code, defined in two characters that make up the country's ISO code
The location code, defined in two characters in order to distinguish banks from the same country
The city code, defined in three optional characters that define the bank city.
What is BIC?
BIC is the acronym for “Bank International Code”, it is another name used in the market for SWIFT.
What is BC or Bacen?
It is the Brazil Central Bank, an independent federal institution, linked, but not subordinated, to the Ministry of Finance. The institution was created in 1964. Among other responsibilities, the BC is responsible for governing the monetary, foreign exchange and credit policies, in addition to authorizing financial institutions to operate, financial relations with the outside world and the regulation and supervision of the National Financial System (SFN).
What is ABA or Bank Routing Number?
It is a 9-digit numeric code issued by the American Bankers Association (ABA) that identifies a bank or institution.
This code is used primarily by financial institutions based in the United States.
What is BSB?
What is BSB?
BSB stands for Bank State Branch and is a 06-digit numeric code that identifies a financial institution within Australia.
The BSB number consists of three parts AAB-CCC, being:
The first two numbers (AA) specify the financial institution.
The third number (B) indicates the state in which the branch is located.
The last three numbers (CCC) is the unique identifier for the branch.
What is Transit?
It is a 5-digit numeric code that identifies a branch of an institution or bank in Canada.
XXXXX: Branch/Agency Number