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Currency Forward contract

With a currency forward you can lock in an exchange rate for up to a year in advance

A currency forward is simply a way of buying currency now at the current exchange rate for a settlement date in the future. When you do the conversion you put down a small deposit, then pay the balance on the date you need the full amount. They are one of the most common ways to reduce and hedge currency exposure for businesses or protect against adverse exchange rates moves for overseas property purchases.

Currency forward contracts for businesses

If your business is importing, exporting or exposed to foreign currency in any way, then using forward currency contracts to hedge and manage the risk of currency fluctuations is essential. Businesses can use forward contracts to lock in a current foreign exchange rate for overseas transactions. The key benefits for companies is that they are able to account accurately for international business in forecasts and budgets.

Currency forwards for individuals

Individuals can use forward contacts if they have an upcoming purchase and want to fix the current exchange rate. The process is very simple and can be done online in a few clicks. If for example you are buying a property abroad and have to make a final payment of EUR 500,000 in six months time. But, you think the EUR to GBP rate will move against you over that period, you can use a currency forward to buy the EUR now, but not have to pay the GBP for another six months.

FX forward drawdowns & rollovers

Customers can drawdown funds on currency forwards before they are due to settle if they are required beforehand. Also, if customers require funds at a later date to settle, forward contracts can be rolled over ahead of settlement.

Request a “Currency Forward Contract” Quote

Tell us a little about your currency requirements and we’ll get right back to you with a bank beating rate and be on hand to answer any questions you have.

Currency forwards are subject to the following deposits: 1-6 months = 5%, 6-12 months = 10%

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