Foreign currency transactions from Octobank

JSC "Octobank" makes foreign currency payments under foreign trade contracts and non-trade transfers of individuals through the international payment system SWIFT.

What is SWIFT?

SWIFT (Society for Worldwide Interbank Financial Telecommunications) is an international interbank system for transmitting information and making payments, ensuring high security of transactions by encrypting data.

JSC Octobank opens bank accounts for legal entities and individual entrepreneurs in foreign currency.

To open an account in foreign currency, you must submit the following documents to the bank:

Entity:

• Application for opening an account;

• A copy of the Charter (notarized);

• A copy of the registration certificate;

• Card of sample signatures, notarized in 2

• Copies of passports of the director and chief accountant.

Individual entrepreneur:

• Application for opening an account;

• Patent;

• Card of sample signatures, notarized in 2 copies;

• Copy of the passport.

JSC "Octobank" opens documentary letters of credit under foreign trade contracts in order to minimize the risks of failure to fulfill the obligations of foreign partners to supply goods and/or perform work (services).

What is a letter of credit?

A letter of credit is an obligation of the bank that opened the letter of credit (issuing bank) on behalf of the buyer to pay the agreed amount to the seller, subject to the provision by the seller of the documents specified in the letter of credit. The bank opens a letter of credit based on the buyer's (importer's) instructions drawn up in accordance with the terms of the contract. It is important for both the importer and exporter of goods to note that letters of credit represent a transaction separate from the sales contract or other contracts on which they are based.

Advantages of settlements using documentary letters of credit:

For importers:

• A documentary letter of credit helps the importer to significantly reduce the risk associated with the seller's failure to fulfill delivery obligations.

• A letter of credit provides confidence that payment will be made only after the provision of documents confirming the shipment of the goods.

• Having a letter of credit allows you to completely or partially avoid prepayment.

For exporters:

• Guarantee of payment upon presentation of documents stipulated by the terms of the letter of credit.

• Reduced production risk, primarily in relation to cases where the buyer cancels or changes an order.

• Possibility of structuring the delivery schedule taking into account your interests.

• The buyer cannot refuse payment for any claim to the goods.

• Replenishment of the authorized capital of legal entities in foreign currency;

• Issuance of travel expenses to legal entities;

• Mutual settlements under export contracts.

JSC "Octobank" concludes SWAP transactions in order to maintain the solvency of export-oriented clients in foreign currency.

What is SWAP?

A SWAP is a derivative financial instrument, an agreement under which currencies are exchanged and at the same time an obligation is assumed to conduct a reverse counter-transaction at a fixed rate within a certain period.

JSC "Octobank" purchases clients' free foreign currency under a SPOT transaction. Today, clients of Octobank JSC can submit POTS Agreements electronically.

What is SPOT?

SPOT is an immediate transaction for the purchase/sale of foreign currency at the expense of the national currency.

JSC "Octobank" participates in interbank trading sessions in the UzREX on behalf of clients for the purpose of buying or selling (converting) foreign currency. Today, clients of Octobank JSC can submit an Application for foreign currency conversion electronically.