Advantages for You
- Pegging a future cash-flow in the company’s planning
- A maturity of up to 24 months can be arranged
- Conversion between all currencies on the foreign exchange price list
An FX Forward, or, in other words, a term currency conversion, is an undertaking to buy or sell money in one currency for money in another currency at a term (forward) price valid at the time of the transaction, with a transfer to the accounts specified by the client, with a settlement date of more than 2 business days and a maximum maturity of 2 years. The forward price depends on the current exchange rates and on the difference between the interest rates in the relevant currencies.
Sberbank CZ enables its clients to enter a request to have exchange rate developments tracked and the client’s orders executed at the desired exchange rate level.
The company knows that it will collect EUR 100,000 in 6 months. Today, the forward rate for settling transactions in 6 months is 24.800 CZK/EUR. The company will enter into a transaction for the sale of EUR/CZK with a settlement in 6 months at the rate stated, and the client knows today that that is the exchange rate he will get.
- Protection against adverse FX rate developments
- The tracking of exchange rate developments and execution of client orders at the desired exchange rate level
- The position can be closed at any time before maturity at the current rate using a counter-transaction
- Can be arranged over the telephone
Notice about potential risks
- Does not allow the client to benefit from favourable FX market rate developments
- An amount blocked in the client’s account or a treasury limit set
- The heightened client-protection provisions based on the European Parliament and the Council Directive 2014/65/EU "The Market in Financial Instruments Directive II" - MiFID II apply to this product.
Head of the Global Markets
|Branko Sušić||+420 234 706 email@example.com|
Global Market Sales
Trading in FX and Interest-Rate Instruments
|Martin Chum||+420 234 706 firstname.lastname@example.org|
|Filip Jelínek||+420 234 706 email@example.com|
|Martina Lukesová||+420 543 525 firstname.lastname@example.org|
|Marek Bohumský||+420 234 706 email@example.com|