The SWIFT plays an important role in Foreign Exchange dealings. Explain.
CA Final · Advanced Financial Management · MTP · November 2024
The SWIFT plays an important role in Foreign Exchange dealings. Explain.
Suggested Answer and Working Notes:
The SWIFT plays an important role in Foreign Exchange dealings because of the following reasons: In addition to validation statements and documentation it is a form of quick settlement as messaging takes place within seconds.Because of security and reliability helps to reduce Operational Risk.Since it enables its customers to standardise transaction it brings operational efficiencies and reduced costs.It also ensures full backup and recovery system.Acts as a catalyst that brings financial agencies to work together in a collaborative manner for mutual interest.
Topics: Foreign Exchange Exposure and Risk Management
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