Foreign Exchange Contracts

Foreign Exchange Contracts
Spot Foreign Exchange Contracts

An agreement to buy or sell foreign currency against another currency, at the prevailing market price and where settlement occurs in two business days common to both currencies.

Forward Foreign Exchange Contracts

A binding Foreign Exchange (FX) contract, that locks in the exchange rate of a currency at a future date.

Features to note:

  • Provides protection against currency volatility/risk
  • Helps fix the cost of your future FX commitments.
  • No up-front payment required.
Par Forward Foreign Exchange Contracts

Par forward is a hedging instrument that allows you to manage your FX exposures more effectively.

Features to note:

  • Applicable to businesses who have a guaranteed series of future FX commitments over a fixed period of time.
  • FX rates of the entire series of forwards would be blended into a single FX Rate.
  • Cash-flows being hedged could be at irregular intervals or of irregular notional value.
  • A defensive and conservative strategy for the hedger who wishes to ‘lock-in’ their cash flow requirements.

View Foreign Exchange rates

Overseas Representatives

Please click here to view the overseas representatives