Cash and forex services

Cash and forex services

As member of the Eurosystem, De Nederlandsche Bank (DNB)can offer its clients an automatic, two-tier investment facility for overnight credit balances. Since both facilities are optional, a combination of the two is possible:

Tier 1
A limited fixed amount per customer will be invested overnight at DNB on a principal basis. This amount depends on the average end-of-day cash balances. DNB is your counterparty (zero-risk weighting).

Tier 2
Funds are invested overnight in the money market on an undisclosed-agency basis. Counterparties used will have a minimum AA credit rating by at least two leading rating agencies.

Fixed-term deposits on an agency basis

To increase the return on account balances, clients may request DNB to invest their euros via deposit transactions. Based on instructions, DNB will invest the amounts indicated in the money market on a best-effort basis with trusted counterparties. Deposit terms must be in accordance with good market practice and have a one-year maximum.

Foreign exchange transactions on a principal basis

DNB enables its clients to conduct foreign exchange transactions, in which DNB acts on a principal basis. These foreign exchange transactions can be for the sale or purchase of euros against any of the non-euro area G10 currencies (i.e. USD, JPY, GBP, CHF, CAD and SEK).

To avoid the risk of unintended signalling effects that might interfere with monetary policy, such transactions are in some cases subject to prior approval by the ECB.