FX Forwards

Forwards are transactions representing the commitment to mutual interchange of two currencies with a maturity exceeding that of the spot exchange rate, i.e. at least D+3, and with the future rate fixed on the institution date of the commitment. This means fixing the exchange rate in respect of future conversions for the purpose of hedging exchange rate risk in connection with the management of cash flows in different currencies.

The forward rate is derived from the spot rate, with adjustment for forward points, which represent the interest differential for the period to the forward maturity date. On the institution date of the commitment no interchange of cash between the client´s accounts occurs, it is only done on the maturity date.

Forwards do not present standardised products, i.e. amounts and maturity dates are agreed individually according to the client’s requirements.

Application:

• an instrument for securing exchange rates of cash flows in foreign currencies against fluctuations in foreign exchange markets.
• an instrument for fixing the price of a commodity in advance

Conditions

• Framework Derivatives Agreement signed

Contact

Corporate Sales

02/5055 9555, 02/5055 9666, 02/5055 9520, 02/5055 9595, 02/5055 9650
02/5055 9610, 02/5055 9620, 02/5055 9630, 02/5055 9640