PURPOSE
To show illustration of foreign exchange swap cross.
OVERVIEW
TRANSACTION DETAILS
| Accounting Base Ccy |
| SGD |
| Trade ID |
| Trade Date |
| VDate |
| Sell Currency |
| Buy Currency |
| Rate |
| Sell Amount |
| Buy Amount |
| Points |
Near Leg
| FRX1001 |
| 25-Mar-03 |
27-Mar-03 |
USD |
GBP |
| 1.435000 |
-1,440,000.00 |
1,003,484.32 |
0.000150 |
Far Leg
| FRX1002 |
| 25-Mar-03 |
3-Apr-03 |
GBP |
USD |
| 1.435150 |
-1,003,379.44 |
1,440,000.00 |
SUMMARY OF JOURNALS
| ID | Date | Description |
|---|---|---|
| J1 | 27-Mar-03 | Settlement of Trade |
| J2 | 27-Mar-03 | Settlement of Trade |
| J3 | 31-Mar-03 | Month end revaluation |
| J4 | 1-Apr-03 | Reversal of Month end revaluation |
| J5 | 3-Apr-03 | Settlement of Trade |
| J6 | 3-Apr-03 | Settlement of Trade |
J1 Settlement of Trade
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| FRX1001 | 27-Mar-03 | B | FX Cash Clearing Account | GBP | -1,003,484.32 | 2.508990 | SGD | -2,517,732.12 | J1a |
| FRX1001 | 27-Mar-03 | P | Cash at Bank | GBP | 1,003,484.32 | 2.508990 | SGD | 2,517,732.12 | J1b |
J2 Settlement of Trade
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| FRX1001 | 27-Mar-03 | B | FX Cash Clearing Account | USD | 1,440,000.00 | 1.717170 | SGD | 2,472,724.80 | J2a |
| FRX1001 | 27-Mar-03 | P | Cash at Bank | USD | -1,440,000.00 | 1.717170 | SGD | -2,472,724.80 | J2b |
J3 Month end revaluation
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| FRX1002 | 31-Mar-03 | P | FX - Unrealised Gains - FX Trade | SGD | -12,231.57 | 1.000000 | SGD | -12,231.57 | J3a |
| FRX1002 | 31-Mar-03 | B | FRX:Derivative Liability Fair Value | SGD | 12,231.57 | 1.000000 | SGD | 12,231.57 | J3b |
| Booked | ME Rate SGD | Revalued To | Gain/Losses | |||
| FRX1001 | GBP | -1,003,484.32 | -2,511,640.97 | 2.507750 | -2,516,487.80 | -4,846.83 |
| FRX1001 | USD | 1,440,000.00 | 2,476,713.60 | 1.731800 | 2,493,792.00 | 17,078.40 |
12,231.57 |
J4 Reversal of month end revaluation
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| FRX1002 | 1-Apr-03 | P | FX - Unrealised Gains - FX Trade | SGD | 12,231.57 | 1.000000 | SGD | 12,231.57 | J4a |
| FRX1002 | 1-Apr-03 | B | FRX:Derivative Liability Fair Value | SGD | -12,231.57 | 1.000000 | SGD | -12,231.57 | J4b |
J5 Settlement of Trade
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| FRX1002 | 3-Apr-03 | B | FX Cash Clearing Account | USD | -1,440,000.00 | 1.719940 | SGD | -2,476,713.60 | J5a |
| FRX1002 | 3-Apr-03 | P | Cash at Bank | USD | 1,440,000.00 | 1.719940 | SGD | 2,476,713.60 | J5b |
J6 Settlement of Trade
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| FRX1002 | 3-Apr-03 | B | FX Cash Clearing Account | GBP | 1,003,484.32 | 2.502920 | SGD | 2,511,640.97 | J6a |
| FRX1002 | 3-Apr-03 | P | Cash at Bank | GBP | -1,003,484.32 | 2.502920 | SGD | -2,511,640.97 | J6b |
EXCHANGE RATES
Our illustration assumes the company uses different daily exchange rates for accounting.
The following rates were used for this illustration.
Spot rate
| Date | GBP/SGD | USD/SGD |
| 27-Mar-03 | 2.508990 | 1.717170 |
| 31-Mar-03 | 2.507750 | 1.731800 |
| 3-Apr-03 | 2.502920 | 1.719940 |
* round to 6 dp. Full precision used for calculation of average rates
FREQUENTLY ASKED QUESTIONS
RELATED INFORMATION
CHANGE HISTORY
| Date | By | Changes |
|---|---|---|
| 22-Jan-2008 | CS | Creation. |
| 20-Jun-2016 | RJ | Reformatted. |
| 23-Apr-2020 | LT | Re-formatting. |
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