Forward currency contract

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Forward currency contract

An agreement to buy or sell a country's currency at a specific price, usually 30, 60, or 90 days in the future. This guarantees an exchange rate on a given date.

Forward Currency Contract

An agreement between two parties to exchange two currencies at a given exchange rate at some point in the future, usually 30, 60, or 90 days hence. A forward currency contract mitigates foreign exchange risk for the parties and is most useful when both parties have operations or some other interest in a country using a given currency. Forward currency contracts are over-the-counter contracts.
References in periodicals archive ?
The company routinely uses forward exchange contracts to offset its net exposures, by currency, related to the foreign currency denominated monetary assets and liabilities of its operations.
Roman has now switched its full business banking to HSBC's Tyne Tees Commercial team and a forward exchange contracts facility has been put in place, which helps protect the company against adverse movements in exchange rates.
Other measures disclosed to support the rupee include liberalisation of the financial market by enhancing the limits for exporters to re-book cancelled forward exchange contracts and opening a special concessional window for swapping foreign currency non-resident (FCNR) deposits and dollar funds.
The measures disclosed to support the rupee include liberalisation of the financial market by enhancing the limit for exporters to rebook cancelled forward exchange contracts and opening a special concessional window for swapping foreign currency non- resident deposits and dollar funds.
The overseas branches of MCB will handle settlement, remittance and yuan deposit services, as well as forward exchange contracts and other derivatives to help clients hedge their foreign exchange risk.
When it comes to hedging through forward exchange contracts, people who are on salaried employment are disadvantaged because the amounts at their disposal are too small to meet the minimum limits.
Time to dust-off your currency risk management plans, if you haven't done so already, and conduct a keen review of those hedging instruments like your Forward Exchange Contracts, Money Market Hedge, Futures, Options and Swaps.
After the close of the accounts, Bavarian Nordic has realised forward exchange contracts of USD 200 million.
9 billion yen, primarily reflecting the result of forward exchange contracts and equity method profits.
However, with its choice of hedging a risk in these future commitments with forward exchange contracts, SAA eliminated any potential flexibility, at least outside of bankruptcy proceedings.
dollar, as many of them have made forward exchange contracts and have projected the current exchange levels in their business strategy.
48 billion yen, hit by a fall in equity investment returns and some losses from forward exchange contracts.

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