Currency forward

A currency forward is an agreement between the bank and the client executed at present time and covering conversion of currencies of a given volume on a specific future date at a predetermined rate.

The future exchange rate is established based on the spot rate of a given currency pair, the number of days until settlement, and the interest rates of each of the currencies.

Product features

  • This is a zero cost transaction.
  • Future exchange rate known in advance.
  • Binding upon both parties irrespective of future developments in the market.



Product variants

Currency forward with an optional date of settlement (settlement within a predetermined time period may be selected).