Our corporate currency exchange brokers can fix an fx rate today for a payment to be made in the future. Forward contracts are an excellent risk reducing measure as they protect your business from currency market volatility. Whatever happens to the foreign exchange rate, you’ll still be able to make and receive currency transfers at the rate you pre-agreed with your broker. Forward contracts are also an extremely useful tool when working with a strict budget as they allow you to have an exact knowledge of expenditure and income.
Forward contracts in foreign exchange should not be confused with futures contracts. Although we are able to offer you an exchange rate for a future requirement we are not predicting what may happen to the currency pair in question. We effectively buy or sell your requirement now, based on the current exchange rates, and apply any interest differential over the period of the contract.
If you’re unsure of when you’ll need to send or receive funds your currency broker can arrange a flexible forward contract which allows you to specify a window of time in which you will make or receive a payment.