Foreign exchange

Across BBVA the shift to digital is creating opportunities and ensuring customers and clients get better and better products and services.

BBVA Bancomer today completed the settlement of an interest-rate swap denominated in Mexican pesos, making it the first Mexican bank to settle transactions through the global clearance house LCH. BBVA SA in Madrid acted as the settling entity.

The headlines about the U.S. dollar this year have underscored how complicated it is to predict the movement of any one currency in a global economy. They’ve gone from grim (“Dollar set for worst January in 30 years”) to triumphant (“Dollar claws back”) to deflated (“Dollar’s rebound fizzles”) in a matter of weeks.

Money 20/20 Las Vegas is without doubt one of the showcase events for technology and financial services in the world. Every years thousands of people involved in the industry, from big banks like BBVA to technology firms like Google and most importantly innovators and start-ups, gather to discuss the future of the industry.

A swap is an agreement for a financial exchange in which one of the two parties promises to make, with an established frequency, a series of payments, in exchange for receiving another set of payments from the other party. These flows normally respond to interest payments based on the nominal amount of the swap.

BBVA and BBVA Bancomer are piloting an FX matching application developed by Calypso Technology, a leading provider of cloud based cross asset trading software solutions for the financial markets, and enterprise software firm R3. The application, which runs on R3’s Corda platform and is facilitated by Calypso’s cloud services, has already been used by the two banks to match a test FX trade.

Sending money to friends and family just got faster, more convenient, and a lot more personal. A new online app-based (iOS and Android) service called Tuyyo, launching Monday and powered by BBVA, will upend the $73 billion annual market for remittances to Latin America and the Caribbean from the United States. Globally, the remittance market is set to exceed $600 billion this year and reach close to $629 billion in 2018.

BBVA has adhered to the Foreign Exchange (FX) Global Code of Conduct, a voluntary code that aims to promote a robust, fair, liquid, open and transparent market in which wholesale market participants can trade securely and effectively at competitive prices that reflect available market information.

BBVA is one of 11 banking institutions that are collaborating on the development of the Voltron project, a platform based on DLT (distributed ledger technology) that puts exporters and importers in contact, in order to improve efficiency in trade finance.

We have already seen what the foreign exchange market is and how it works, as well as different exchange rate systems. Here, we will analyze the broad range of participants that engage in a market that, in average, churns around 5 trillion dollars on a daily basis.

An exchange rate system, also called a currency system, establishes the way in which the exchange rate is determined, i.e., the value of the domestic currency with respect to other currencies. Choosing the currency system is a pivotal element of the economic policy adopted by a country’s government. The currency system has significant repercussions on the flexibility of the exchange rate and on other instruments of economic policy.

The foreign currency or foreign exchange market is a decentralized worldwide market in which currencies are traded. It was created in order to facilitate the flow of money derived from international trade. Today, it is the world's largest financial market, with an average daily volume of about $5 trillion, and is undergoing an important and growing “electronification.”

BBVA held in March its 6th annual Public Sector Investors and Issuers Seminar bringing together 60 central banks, sovereign borrowers, supranational institutions, and national agencies for 3-days of discussions on a broad range of investment themes.

Some of the key themes discussed were the impact of unconventional monetary policies on public sector issuers and investors, the challenges facing reserve managers in times of negative interest rates, and the debt management strategies of public sector issuers. The following are four of the most interesting issued discussed.

The U.K. is convinced that London will continue to be Europe's fintech capital and a global financial center after Brexit. But other European capitals are hoping to take its place. It will all depend on the long negotiation about to begin between the EU and the U.K.