Example 2 - Multilateral Netting

Step 1 - Convert to common currency $

Counter / $ $
UK SA 1,200,000 Rand 6.126 195,886
UK FR 480,000 Euro 0.880 545,455
FR SA 800,000 Rand 6.126 130,591
SA UK 74,000 Sterling 0.680 108,824
SA FR 375,000 Euro 0.880 426,136

Step 2 - Produce Payoff Matrix & Subtotal

UK FR SA
UK 545,455 195,886 741,341
FR 130,591 130,591
SA 108,824 426,136 534,960
Total Owed 108,824 971,591 326,477
Total to Pay - 741,341 - 130,591 - 534,960
Net - 632,517 841,000 - 208,483

Step 3 - Instruct
UK to pay France 632,517
SA to pay France 208,483
841,000