In recent years, volatility across the foreign exchange (FX) market has become the new normal. Macroeconomic and geopolitical events from Brexit to falling oil prices greatly impacted the FX market, resulting in increased volatility and currency rate fluctuations. Thousands of global businesses who rely on ever-fluctuating exchange rates are switching to OANDA’s exchange rates API for an automated way to ingest exchange rate data directly into their ERP or software system. Automating exchange rates directly into the computing environment not only saves time, but more importantly it ensure data accuracy, minimizes the risk of human error, and ensures consistent data across global organizations.
Why use an automated exchange rates API?
Accounting, tax, and CPA professionals using exchange rate data for financial reporting must navigate the tumultuous business and economic landscape by balancing multiple local entities, regulatory standards, and exposure to different currencies. Destabilized currency markets increase the risk of multi-currency errors, and can create a source of tension between finance departments and foreign entities.
Having a consolidated and clear source of foreign exchange rates data is best practice when it comes to multi-currency financial reporting. Establishing a centralized source of data with an accurate and reliable automated Exchange Rate API that will cover global currencies, precious metals, and increasingly necessary Central Banks that companies are exposed to. This ensures that everyone is working from the same set of figures, reduces data discrepancies, and streamlines processes.
OANDA’s Exchange Rates API provides access to the most robust data set of its kind with over 38,000 currency pairs, 200 currencies and precious metals dating back to 1990, as well as over 25+ Central Bank exchange rates. For over 20 years, OANDA has been the go-to source for automation in currency conversion for financial reconciliation and internal reporting needs directly from within ERP systems, accounting software, and more.
For global companies, pricing products in the local currency where the product is offered is very important. Because people tend to feel most comfortable making a purchase in a familiar local currency, when products are priced in a foreign currency the cart abandonment rate increases and cuts into sales for the business. A study done by Profitwell shows that companies who failed to price their products in the local currency sold 30% less overall versus companies that did localize their pricing in the local currency.
Clearly businesses cannot afford to price their products in a foreign currency. OANDA’s Exchange Rates API allows businesses to accurately and automatically price products in currencies around the world in order to cater to local markets. There are multiple options for setting the exchange rates to fit any business’s pricing needs:
Daily average market rates: The average of the currency’s intraday fluctuation
Fixed market rates: Setting a fixed rate can help manage day-to-day volatility while adhering to business’s financial needs
Real time rates or tick-by-tick data: Setting up a pricing engine with real time rates will update the prices to the current exchange rate every 5 seconds. Even more granular, tick-by-tick data will update prices to the most current rate by the fraction of a second, ensuring that clients are getting the most accurate price at the moment of purchase.
Product Development (fintech apps, travel sites, and more)
Developers and IT teams creating apps or digital products will utilize foreign exchange rates to power products. Travel sites often use FX rates to power their global pricing engine or currency conversion. Financial websites will leverage exchange rates APIs to showcase currency trends, conversions, or engage clients with interactive charting all powered from currency exchange data.
Although there are countless ways that FX data can be used for product development, three things remain constant regardless of use case: the data must be reliable and accurate to power the end product, as well as easily integratable into any business’s existing software.
Reliable: OANDA has a 20 year track record of reliability in FX which is why thousands of companies all over the world trust OANDA’s exchange rates to power their products. Our API has an uptime of over 99.99% with tier 3 level security and fully redundant servers.
Accurate: Due to the nature of the currency market, providing an accurate rate becomes an art and a science; that’s why at OANDA we are able to provide what is widely considered the gold standard in exchange rates since we are in the unique position to:
Access the main players in the foreign exchange market in real-time
Rely on a broad range of redundant (and reputable) data sources
Aggregate all the data points from one trading day
Calculate a time-weighted-average-price (or TWAP)
Deliver foreign exchange data automatically via API, as well as through our cloud-based Historical Currency Converter.
Ease of Integration: Our Rest API is simple to install in any computing environment, but we also provide resources like ERP integration documentation and our developer portal. Our API supports JSON, XML & CSV, which makes it an ideal, and simple, solution for any product needing exchange rate data.
Be sure to check out our full line of FX products including OANDA’s Exchange Rate API to automatically retrieve forex data for ERP systems, digital products, fintech apps, as well as accounting and treasury software.
OANDA’s popular web application, the Historical Currency Converter, allows users to manually retrieve historical data via convenient CSV download.
OANDA Money Transfer completes our offering with fast and convenient international payments to over 170 countries.