Forward currency contract

(redirected from Forward Exchange Contracts)

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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Some of the products available from the Commonwealth Bank include Forward Exchange Contracts, a 24-hour Market Watch service, Foreign Currency Options, or Flexible Forward Contracts.
The forward exchange contracts were excluded from the sales denominator under similar reasoning, because they were short-term investments in foreign currencies, with a goal of profiting from currency fluctuations.
* The company could purchase forward exchange contracts to hedge its currency risk.
Commercial banks can access swap facilities maintained by the UAE Central Bank to cover forward exchange contracts offered to exporters or importers for hedging purposes.
But the automaker's group net profit fell 62.5 percent to 2.48 billion yen, hit by a fall in equity investment returns and some losses from forward exchange contracts.
dollar, as many of them have made forward exchange contracts and have projected the current exchange levels in their business strategy.
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.
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.
Consolidated ordinary profit increased by 8 percent year-on-year to 22.9 billion yen, primarily reflecting the result of forward exchange contracts and equity method profits.
Cash generation in 2008 also included cash inflows from forward exchange contracts which were not repeated in 2009.
ICRA notes that foreign currency risk is partially mitigated through the natural hedge of sale and purchase transactions and through forward exchange contracts.
Lloyds TSB Commercial offers a wealth of international business and foreign exchange services and products such as 'forward exchange contracts', which allow businesses to buy or sell a currency at a fixed exchange rate.

Full browser ?