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Foreign Exchange Service
International Money Transfers (Wires)
FirstMerit provides international funds transfer services for expediting your overseas payment requirements. Your funds may be transferred by draft or electronically. Drafts are drawn on foreign banks in a variety of foreign currencies. Wire transfers may also be made in U.S. dollars or a variety of foreign currencies to foreign banks in favor of parties abroad.
Features
Payments are made in a variety of foreign currencies
or U.S. Dollars.
Benefits
May provide you advantages when purchasing items overseas in the seller's currency.
Foreign Currency Exchange
FirstMerit offers banknotes in a variety of foreign currencies.
Click here to see which currencies are available for exchange.
Features
Foreign currency exchange is available at any FirstMerit branch.
Benefits
Convenience of exchanging foreign currency and locally.
Foreign Exchange
International trade payments usually require that foreign currency be exchanged. The inherent risk is that future exchange rates are unknown. It is quite possible that the relative value of the dollars versus the buyer's or seller's currency may change between the time of the sale and final payment. An easy way for you to avoid this risk is to require payment in U.S. dollars. Unfortunately, this places the currency risk on the other party and may negatively affect the final negotiated purchase price.
As an alternative you may enter into a contract with an international bank to either purchase or sell foreign currency at a fixed price in dollars, regardless of the value of the currency at the time of payment.
- Spot contracts are foreign currency exchange contracts for
the purchase or sale of foreign currency for two-day value.
- Forward contracts are foreign currency exchange contracts for the purchase or sale of foreign currency. Their delivery dates range from one week to twelve months, and in some instances for a longer amount of time at a fixed price. Forward contracts may be closed (meaning settlement is required on a specific date) or open (meaning settlement may be made any day during a pre-determined period).
Features
- Provides for the purchase or sale of foreign currency
- Forward contracts provide for the future purchase or
sale of foreign currency at a pre-determined fixed price
Benefits
- Facilitates payment of international trade and may enhance the negotiated prices
- Eliminates the foreign exchange risk
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