Oct 21 (Reuters) - Bank of America ( BAC ) on Monday

extended its guaranteed exchange rates by up to one year, the

longest tenor in the industry, in an effort to reduce the risks

to cross-currency transactions amid rising volumes.

A locked-in foreign exchange spot rate would help companies

mitigate exposure to currency fluctuations and simplify treasury

management processes such as forecasting and reconciliation, the

bank said.

"For corporate treasurers, volatile FX markets exacerbate

the challenge of cash flow forecasting," said Daniel Stanton,

head of transactional FX in global payments solutions at Bank of

America ( BAC ).

"Securing guaranteed FX rates of longer tenors can help them

improve forecasting, which will lead to better informed

decision-making,", Stanton said.

Much of the cross-border payments are generated by

businesses in e-commerce, services and manufacturing industries.

(Reporting by Sherin Sunny in Bengaluru; Editing by Arun

Koyyur)