SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Process forward exchange contracts 
SAQA US ID UNIT STANDARD TITLE
10125  Process forward exchange contracts 
ORIGINATOR
SGB Banking and Micro Finance 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 3  NQF Level 03 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
Persons credited with this unit standard will be able to explain rules and regulations relating to forward exchange contracts establish the contract, source the foreign currency and then manage and close the contract. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
This unit standard should be completed subsequent to proven competence in the unit standards for purchasing and selling foreign instruments and processing inward and outward foreign documentary collections. 

UNIT STANDARD RANGE 
Foreign Exchange Contracts (FEC`s), futures and derivatives. Evidence of competence across the full range is required. 

Specific Outcomes and Assessment Criteria: 

SPECIFIC OUTCOME 1 
Explain rules and regulations related to forward exchange contracts. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The nature of the product is understood and explained according to the specific bank's policy and procedure. 
ASSESSMENT CRITERION RANGE 
Types of forward exchange contracts, the nature of the underlying transaction, how the product works, the process for payment, the parties to the transactions, rights and obligations, terms and conditions, pricing, features and benefits. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 2 
2. The relevant South African legislation affecting forward exchange contracts is identified and explained in line with the intention of the legislation, and bank policy and procedure in the manner required by the bank. 
ASSESSMENT CRITERION RANGE 
Exchange Control regulations, Bills of Exchange Act. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 3 
3. The relevant international regulations and accepted practice governing forward exchange contracts are understood and explained in the manner required by the bank. 
ASSESSMENT CRITERION RANGE 
International payment systems, SWIFT messages and format. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 4 
4. The risks and risk management processes associated with the forward exchange contracts are understood and explained in the manner required by the bank. 
ASSESSMENT CRITERION RANGE 
Risks from the client's and the banks perspective, country risk, acceptable practice,payment terms, technical risks, exchange rate risk, credit risk, basic management practices associated with forward exchange contracts. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 5 
5. The specific banks electronic process for processing forward exchange contracts is understood and explained in the manner required by the bank. 
ASSESSMENT CRITERION RANGE 
Access to the system, opening a record, printing records/ reports, making amendments, correcting mistakes, processing and capturing rules and regulations.
 

SPECIFIC OUTCOME 2 
Establish the contract. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. Details of the currency requirements are obtained from the client and recorded in the manner required by the bank. 
ASSESSMENT CRITERION RANGE 
Currency, amount, contract options and time period. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 2 
2. Compliance with exchange control regulations and rulings is established or the necessary approval for the facility is obtained if required, according to standard policy and procedures. 

ASSESSMENT CRITERION 3 
3. Where necessary, credit authority is obtained and recorded according to standard policy and procedures. 

ASSESSMENT CRITERION 4 
4. A fixed rate for the currency/pair is determined in liaison with treasury and in the manner required by the bank. 

ASSESSMENT CRITERION 5 
5. The rate and the terms and condition of the contract are conveyed to the client for acceptance. 
ASSESSMENT CRITERION RANGE 
Details of the contract, pricing and associated charges, expiry date of contract, contract options, cancellation implications. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 6 
6. The contract for the sale or purchase of currency is completed and processed according to standard procedures. 
ASSESSMENT CRITERION RANGE 
Client authorisation, verification of signatures, complete, accurate record of contract established. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 7 
7. The fee is confirmed to the client according to standard procedures. 

ASSESSMENT CRITERION 8 
8. Charges are recovered according to standard procedures. 

SPECIFIC OUTCOME 3 
Process drawings under the contract. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. Details of the drawings are obtained from the client and recorded in the manner required by the bank. 
ASSESSMENT CRITERION RANGE 
Currency, amount, contract options and time period. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 2 
2. Where necessary, settlement instructions are obtained from the client in line with standard procedures. 

ASSESSMENT CRITERION 3 
3. Depending on the nature of the underlying transaction, the disposal of the currency/pair is arranged in line with standard procedures. 
ASSESSMENT CRITERION RANGE 
Letters of credit, foreign bills for collection, foreign finance loans. Evidence across the full range is required.
 

ASSESSMENT CRITERION 4 
4. Each drawing of currency under the contract is recorded according to standard procedures in terms of the contract and in line with exchange control requirements. 

ASSESSMENT CRITERION 5 
5. Early drawings/rollovers/cancellations are processed according to standard procedures. 

ASSESSMENT CRITERION 6 
6. Any additional charges are recovered according to standard procedures. 


UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
1. Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.

2. Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA.

3. Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines in the relevant qualification and the agreed ETQA procedures.

Therefore anyone wishing to be assessed against this unit standard may apply to be assessed by any assessment agency, assessor or provider institution which is accredited by the relevant ETQA. 

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
Detailed knowledge of specific banking policy and procedures relating to the task/function performed.
Working knowledge of internal and international payment systems.
Working knowledge of internal controls.
Working knowledge of appropriate SWIFT message formats.
Working knowledge of exchange rates and treasury.
Working knowledge of relevant exchange control regulations.
Operating and computer systems knowledge sufficient to locate necessary information and complete the task.
General understanding of the specific risks, relevant policies and laws relating to foreign exchange transactions.
Working understanding of the different types of foreign finance facilities. 


Critical Cross-field Outcomes (CCFO): 

UNIT STANDARD CCFO IDENTIFYING 
The learner is able to understand the relationship between the forward exchange contract and exchange control regulations. 

UNIT STANDARD CCFO WORKING 
The learners is able to evaluate and process a forward exchange contract.

The learner is able to use technology to process the drawing documents and payments. 

UNIT STANDARD CCFO COMMUNICATING 
The learner is able to communicate effectively when handling applicable queries. 

REREGISTRATION HISTORY 
As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
  ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
Elective  20184   National Certificate: Banking  Level 3  NQF Level 03  Reregistered  2023-06-30  BANKSETA 


PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
 
NONE 



All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.