Bank of England foreign exchange rates
We have now added currency exchange rates published by the Bank of England to our Oracle E-Business Suite integration and our FXLoader Cloud Service for integration with Oracle ERP Cloud, JD Edwards, Workday and other ERPs.
What are Bank of England rates?
The Bank of England is the central bank for the UK. They publish daily spot rates on their website .
This gives rates between GBP and (currently) 26 major world currencies, plus USD rates against the same currencies and a more limited set of EUR rates (against 7 currencies).
The definition of how these rates are derived is quoted on their website:
“The data represent indicative middle market (mean of spot buying and selling) rates as observed by the Bank’s Foreign Exchange Desk in the London interbank market around 4pm. A monthly working day average is published. They are not ‘official’ rates and are no more authoritative than rates provided by any commercial bank operating in the London market. Spot rates are applicable to deals executed for settlement two working days later.”
This is a free service, published on their website. It therefore has no SLA attached and no guarantees of availability, obviously. But as it is the official central bank, the service should be more reliable than some other free services.
When would you use Bank of England rates?
You might choose to use HMRC rates for your UK company if:
- Your UK company is keen to use these published rates for reporting
- You would like rates updated daily
- The currencies you need are covered by the 26 or so major currencies published
Within a multi-national, we’ve seen this done in a couple of different ways; you can use Bank of England for GBP rates only with other combinations coming from a source of market rates, or you can load the rates into a separate rate type (if your ERP supports this) to be used by the UK companies only.
How does FXLoader incorporate Bank of England rates?
Bank of England is available as a source within FXLoader for Oracle E-Business Suite and the FXLoader Cloud Service.
You can schedule it daily to get the rates for GBP, USD or EUR. FXLoader allows you to triangulate from these to create all cross-rates you may need. You can also mix these with rates from other sources, such as market rates, using one of the scenarios mentioned earlier.