Forward Contracts

As a trader or investor you may be concerned that the value of your future cash flows, denominated in a currency other than your base currency, will change. A Forward Contract allows you to hedge for a currency exposure. You can buy or sell a specific amount of foreign currency at an exchange rate fixed at the time you enter the contract, for delivery on a specified future date. Hence you are protected against any adverse movements in the exchange rate.

Currency Forward Contracts are relatively short-term agreements and would normally be entered into for periods ranging from one to nine months. The contract is binding, meaning that on the date specified on the contract you must deliver the currency you are selling and take possession of the counter value at the rate defined in the contract.

For further details, call our Trade Finance team on +356 21322100 or send us an email.