A contract to purchase or sell a specified amount of currency in exchange for another currency at a predetermined exchange rate. The contract will be settled at a future date, which will be at least three business days up to one (1) year after the transaction date.

 

Benefits

• Enables effective management of FX risk on future receivables and payables by locking in the exchange rate at the time of the transaction.
• Enhances budgeting and forecasting accuracy by eliminating FX rate volatility from future transactions.