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.
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A common approach to hedging is by using forward exchange contracts that allow you to lock in a price today for conversion at a future date.
Cash flows used for investing activities were approximately $124 million, a decrease of approximately $37 million versus the prior year, primarily driven by changes in foreign currency forward exchange contracts.
The company is a closed-end diversified management investment company which intends to invest all of its assets in fixed income securities such as corporate bonds, asset-backed securities, sovereign, variable rate senior loan interests; short-term investments, foreign currency forward exchange contracts, futures contracts, credit default swap agreements and interest rate swap agreements.
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.
Current FX risk management practices, such as currency cash flow hedging using forward exchange contracts, can be helpful to international businesses.
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.
MU), has started offering forward exchange contracts for the rupee, Dow Jones has reported, citing a separate report by The Nikkei.
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.
ICRA notes that foreign currency risk is partially mitigated through the natural hedge of sale and purchase transactions and through forward exchange contracts.
Cash generation in 2008 also included cash inflows from forward exchange contracts which were not repeated in 2009.

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