Forward Exchange Contracts

Forward Exchange Contracts

There are two different methods of currency trading methods, spot rate, and forward rate. We offer both spot and forward exchange contracts to facilitate payments to overseas suppliers.

Spot Rate Forward Exchange
This is the current price at which a commodity can be bought or sold at a specific time and place and is constantly changing. This is a specific exchange rate at which two parties agree to trade currencies. The forward contract specifies an exchange rate and a future date of exchange.
We can provide spot exchange rates for immediate foreign exchange payments by quoting an exchange rate for a payment where this rate remains valid for two business days. These contracts have a level of flexibility where amounts and delivery dates can be tailored to meet your requirements.

Benefits of Forward Exchange Contracts

  • Protects you from unfavourable movements in future spot rates
  • Eliminates adverse currency movements beyond the agreed forward rate
  • Keeps your future cash flows certain and predictable