Administer Foreign Exchange Transactions

The learner credited with this unit standard is able to apply a comprehension of foreign exchange concepts to the administration of the foreign exchange receipt and payment systems in an international trading company.

The qualifying learner is capable of:

• Verifying foreign exchange transactions.
• Carrying out foreign exchange receipt and payment procedures.
• Reporting on foreign exchange transactions.

Learning Outcomes:

• Verify foreign exchange transactions.
• Supplier’s documentation is checked for correctness of foreign exchange elements and compliance to relevant exchange control regulations.
• Suppliers documentation may include but is not limited to letters of credit, commercial invoices, freight statements, customs declarations, transport documents, ammeters.
  Foreign exchange elements may include but are not restricted to foreign currency, exchange rate exchange rate dates.
• Foreign exchange payment of goods and services are examined for compliance with company systems and procedures and compliance with relevant exchange control regulations.
• Consequences of non compliance with procedures and exchange control regulations are explained in the context of international trade.
• Carry out foreign exchange receipt and payment procedures.
• Foreign exchange risk management procedures are performed in order to minimise exposure to possible exchange rate fluctuation.
• Foreign exchange risk management procedures may include but are not limited to monitoring of exchange rate fluctuations, initiating and managing forward exchange contracts.
• Foreign exchange payment receipts are converted and accounted for in terms of generally accepted accounting practices (GAAP).
• Payment methods are selected in terms of the nature of the transaction being conducted.
• Payment methods may include but are not limited to electronic banking, telegraphic transfers, bank draft, cash.
• Payment documentation is prepared in terms of the payment method selected.
• Payment is initiated in terms of authorisation limits.
• Consequences of failing to carry out foreign exchange payment and receipt procedures are explained in terms of impact on the organisation.
• Report on foreign exchange transactions.
• Reports are compiled and submitted on the organisation’s foreign exchange receipts and payments.
• Reports are compiled and submitted on the organisation’s foreign exchange risk exposure in terms of the management thereof.
• Recommendations are made regarding improvements to the organisations foreign exchange administration procedures.