Internet Banking

FX Forward Contracts

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Features

Forward Contract is a binding obligation to buy or sell a specific amount of foreign currency at a predetermined exchange rate on an agreed future date. Forward Contracts give protection to any currency volatilities and fluctuations in the future.

Forward contracts will be utilized for transaction at the agreed exchange rate, irrespective of the fact that the prevailing market exchange rate is advantageous or disadvantageous for the client

  • Benefits of Forward Contracts
    • Foreign exchange forward contracts are entered in to hedge the exchange risk in the market
    • Available in any major currency
    • No additional charges involved
    • The user of the forward rate can pre determine the subsequent cost/income
  • Eligibility
  • A customer who is holding a proper underlying transaction can apply for Forward Contracts.

How to get started
  • How to apply for a Forward Contract
  • If the eligibility requirements are fulfilled please contact your branch or the Trade Services Department for details.

  • Documents Required
    • Letter of Indemnity (LI) for forward exchange booking
    • Need to establish a credit limit before entering in to a forward transaction
    • A confirmation of the transaction has to be signed by both parties. -  The bank will forward a confirmation of the forward booking which requires the customer to countersign.