iBanFirst offers a comprehensive range of forward contracts to help businesses manage their exposure to foreign exchange risk. Three types of contracts are available, each designed to meet specific use cases:
Fixed Forward Contract
Flexible Forward Contract
Dynamic Forward Contract
Fixed Forward Contract
A fixed forward contract allows you to lock in an exchange rate for a specific date in the future.
This is the ideal solution if you need to make a payment in a foreign currency on a set date.
Key Features:
Maturity: from 3 days to 24 months
Automatic settlement: the purchased amount is credited to your currency account on the maturity date
Best for: securing a single scheduled payment
Flexible Forward Contract
This contract combines the security of a guaranteed exchange rate with the flexibility of usage over time.
Perfect for covering multiple payments over a period, especially when payment dates are not fixed.
Key Features:
Maturity: from 3 to 365 calendar days
Flexible usage: use the locked-in rate anytime during the coverage period
Automatic conversion of any unused amount at maturity
Best for: covering a series of payments with uncertain due dates (e.g. supplier invoices)
Dynamic Forward Contract
A dynamic forward contract offers a guaranteed rate while also giving you the opportunity to benefit from a better market rate at maturity.
Key Features:
Maturity: from 3 to 365 calendar days
Market advantage: potential to access a more favorable rate at the contract’s expiration
Automatic settlement at maturity
Best for: companies looking to secure a future invoice while still taking advantage of market opportunities
Conclusion
iBanFirst’s forward contracts help businesses effectively hedge against currency fluctuations while offering flexibility and security.
To learn more and find the right solution for your needs, get in touch with your account manager.