Promissory note A7 for foreign economic activity: exchange rate fixing and income in foreign currency for legal entities
In the foreign economic activity segment, there is a noticeable advertising focus on tools that promise to simultaneously manage currency risk and generate revenue for the waiting period for payment. The A7 international settlement platform promotes a bill of exchange product for legal entities, where the amount is issued in rubles with reference to the exchange rate of the selected foreign currency and further calculations at the official exchange rate. The list of currencies includes CNY, USD, EUR and AED.
The essence of the offer for the importer and exporter reads as follows: the company fixes the exchange rate, selects an expiration date of 10 days, and then uses the tool as a "buffer" between the moment of planning and the moment of actual payment to the counterparty. Upon repayment, the accrued income is paid along with the amount, the interest is described as daily accruals. The official materials of the service indicate a rate of 10% per annum and separately note that the rate is current and can be adjusted to market conditions.
For the practice of foreign economic activity, such mechanics close the typical calendar risk: the contract has been agreed, logistics is on the way, and currency volatility can shift the margin into negative territory already at the payment stage. Fixing the exchange rate in the logic of the product helps to fix the payment parameters in advance and maintain estimated profitability when the financial model is linked to the Central Bank rate. The additional part in the form of income looks like an attempt to "monetize waiting" and partially compensate for the freezing of working capital during the preparation of the payment.
The reliability and compliance contour requires special attention. There is a thesis in the public field that 49% of the platform's capital belongs to the PSB. It also has an AA(RU) credit rating with a "stable" outlook according to the rating agency. At the same time, the promissory note itself remains by its nature a debt obligation of the issuer, which means that the legal conditions, the presentation procedure, the list of documents, the settlement procedure and the company's internal limits on counterparty risk become key for business.
A practical checklist for companies considering such a tool:
- check which exchange rate is used for fixing and calculating, how the nominal value is calculated at maturity, and what dates are taken for the exchange rate value.;
- check the time limits, working days, minimum amount, and early exit procedure, if it is stipulated by the conditions.;
- evaluate the product through the unit economics of the contract: margin, delivery time, payment schedule, working capital requirements, cost of alternative funding;
- establish a compliance check of the payment route and documents, as there has already been a sanctions information background around the platform, which affects the risk profile of the settlement chain.
Exchange rate fixing tools in foreign economic activity always work best as part of financial policy, where limits, scenarios, and exit rules are defined in advance. Then the promised "profitability for the planning period" turns into a manageable option, and the currency risk gets a specific framework.
