Forward exchange

Forward exchange

A type of foreign exchange transaction whereby a contract is made to exchange one currency for another at a fixed date in the future at a specified exchange rate. By buying or selling forward exchange, businesses protect themselves against a decrease in the value of a currency they plan to sell at a future 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 ?
An SBP statement here on Wednesday said that in the first phase, seven chapters of the Manual covering regulations on Authorized Dealers, Authorized Rates of Foreign Exchange, Forward Exchange Facilities, Foreign Currency Accounts of Authorized Dealers and Purchase and Sale of Foreign Currencies, Non-Resident Rupee Accounts of Foreign Bank Branches and Correspondents and Loans, Overdrafts and Guarantees stand revised.
Using weekly information on short-term interest rates and spot and forward exchange rates for a set of 20 European economies during 2005-2017, we show that in most cases these bases are non-stationary, implying the failure of the Covered Interest Rate Parity condition.
We first develop the theoretical rationale of the forward exchange rate unbiasedness hypothesis (FUH) for buyers of forward exchange under an assumption of risk neutrality and interest rate parity.
The report forecasts that the forward exchange rate for Q3 2016 will reach EGP 10.
Analysts had earlier warned that forward exchange cover provided by the central bank would affect its balance sheet.
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.
Therefore, the forward exchange rate can be expressed as:
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.
The third interim dividend will be payable on 11 December 2013 in cash in USD, GBP or HKD, or a combination of these currencies, at the forward exchange rates quoted by HSBC Bank plc in London at or about 11.
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.
How is that possible for them to use a forward exchange service that has a threshold of 1 million U.

Full browser ?