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In 1914, the First World War plunged the world into war on an unprecedented scale.
The war was a defining time when millions of people and business across the world entered uncharted territory.
As tensions escalated between Europe's great economic powers, most local banks stopped honouring foreign letters of credit.
Since pioneering the improved security of foreign payments in the 1800s, American Express was one of the few businesses to continue facilitating crucial international payments via bank drafts.
This service provided relief to nearly 150,000 travellers and troops stranded on the continent without access to funds.
As war raged on, the company was appointed an official agent of the British government, tasked with delivering relief parcels, letters and money to British prisoners in Bulgaria, Germany, Holland, Norway, Switzerland and Turkey. American Express employees were authorised to access prisoner of war camps and arrange for British and French prisoners to access bank drafts.
The bank draft - used extensively during this period - is still a common payment method today, used to settle foreign exchange spot contracts. That is, contracts between you and a foreign exchange provider, for almost immediate settlement.
Simple to understand and execute, spot contracts provide a quick exchange of funds - suitable if you're exposed to short term transaction risk.
Longer term foreign exchange risk can be mitigated with the use of forward contracts – agreements to buy or sell a certain amount of a foreign currency at a fixed rate of exchange at a future date.
American Express continues to improve the security and efficiency of international payments and foreign exchange transactions for Singaporean businesses looking to grow in the global marketplace.
The information contained in this document has been prepared for general information and educational purposes only without taking into account your objectives, financial situation or needs and is not designed to substitute for, or replace, a professional opinion about any particular business or situation or judgment about risks or appropriateness of any financial or business strategy or approach for any specific business or situation. This document is not a substitute for professional advice.
You should read the Terms and Conditions and consider the appropriateness of International Payments in relation to your individual requirements. For further information, please refer to the relevant Terms and Conditions
Important Note: Articles, comments and any other materials available on or through the FX International Payments website represent the views of their author and do not reflect the opinions or analysis of the American Express Company or any of its affiliates, subsidiaries or divisions. American Express makes no representation as to and is not responsible for, and does not validate, any information, opinions, assertions or statements expressed in any such materials, or the identity or credentials of the individuals communicating through the site. Information available on the site does not, and should not be relied upon to, replace the advice of your own professional legal, tax and financial advisors.
FX International Payments are arranged through American Express International Inc., (UEN S68FC1878J) Incorporated with Limited Liability in the State of Delaware, U.S.A. with a place of business at 1 Marina Boulevard, #22-00, One Marina Boulevard, Singapore 018989.
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