Forward discount

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Forward discount

A currency trades at a forward discount when its forward price is lower than its spot price.

Forward Discount

In currency trading, a situation in which the forward price for the currency is less than the spot price. A forward discount occurs when the market expects the currency to depreciate over time. It is important to note, however, that this does not always actually happen.
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Royal Jordanian adds more luxury to the services it offers to its economy class passengers through the one-time Lounge Access Voucher and the Lounge Pass for multiple trips, enabling its customers to experience the comfort and relaxing ambiance of the Crown Lounge at super low prices, said Pichler, adding that RJ will continue putting forward discounts and offers on tickets to the different destinations on its global network throughout 2018.
Emerging markets generally tend to have higher political risk and forward discounts.
Within the emerging markets group, Argentina, Brazil, Turkey, Egypt, Romania, Mexico and Hungary have the highest forward discounts and excess returns.
The forward discounts at which Gulf currencies are traded against the US dollar have recently increased but are still low at around two per cent, implying no devaluation expectations that could put pressure on reserves.

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