Products & services

Treasury

Mercantile Bank specialises in a niche range of Treasury, Retail and Commercial products for the SME market (small/medium enterprises). We pride ourselves on our ability to offer tailor made solutions to new and existing clients. The flexibility and transparency of service and pricing is evident in the personal touch offered by the experienced teams at Mercantile Bank, from the Branches to the Dealing Room.

We offer the full range of Commercial Banking products as listed below with a personal assurance from the team that all transactions will be dealt with on a professional level and the process will ensure solutions for our valued client base.

And with our focus on your needs you can rest assured of our commitment to offering you the very best personalised and efficient service.

Our Treasury Department offers the following products and services:

Bonds

We are able to offer prices in the secondary market on all traded listed bonds.

Foreign Exchange

The foreign exchange market encompasses the full vanilla aspect of hedging for all importers and exporters.

Money Market

The rand money market in South Africa encompasses all trading in Rand deposits and loans in the one-year period.

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Foreign Exchange Spot

The International Foreign Exchange Market is settled by a normal market convention known as “Spot”. Spot settlement means that when you buy or sell a foreign currency the actual dual cash flows will take place within two days, commonly known as value ”Spot”.

Foreign Exchange Forwards

The importing of machinery from offshore is normally done over say a one-year period in quarterly foreign payments. We at Mercantile Bank can offer tailor made prices as well as matching exact exposure dates for both the importer and the exporter.

Fixed Contract and/or Partially Optional Contracts

When trying to account or manage future rand cash flows that arise through shipping being delayed or the wrong goods being sent, we can assist in this aspect of cash flow management by offering forward cover that is inflexible and fixed or variable, offering the ability to partially utilse a contract with no hidden or extra costs.

Fully Optional Contract

Swaps for Extensions or Drawdown

Through the forward market we can assist clients to match there foreign cover to mimic exact arrival and shipment dates on foreign goods and exposures.

Vanilla Currency Options

The foreign options market also assists the importer and the exporter with the ability to offer an insurance type hedge. These products provide substantially more flexibility than the normal forward market