Businesses of all sizes face exchange rate risk when conducting transactions in foreign currencies with partners such as companies, suppliers, customers, subsidiaries, or parent companies.
Protection Against Exchange Rate Risk
Forward payment contracts offer businesses the opportunity to protect against exchange rate fluctuations by locking in a rate for a specific amount of foreign currency, which can be used later, regardless of market changes during that period.
Types of Forward Payment Contracts Offered by iBanFirst
iBanFirst allows its clients to subscribe to several types of forward payment contracts:
Fixed Forward Payment Contract: A rate is set for a given period, providing cost predictability.
Flexible Forward Payment Contract: Allows some flexibility in managing amounts and maturities.
Dynamic Forward Payment Contract: Adapts to market fluctuations, offering a more responsive approach.
Activation of Forward Payment Exchange Contracts
Forward payment contracts are additional services that must be activated via the iBanFirst platform and subscribed to by phone with your account manager.
New: Self-service and API-driven Forward Payments (Beta)
iBanFirst is currently beta testing new ways to execute fixed forward payments, designed to simplify and scale your financial operations:
Autonomous Fixed Forward Payments
Book fixed forwards directly on the platform, without the need for manual intervention from your Account Manager.
Fixed Forward Payments via API
Integrate forward booking and settlement directly into your accounting or treasury systems. Previously available only for Spot operations, this functionality now extends to fixed forward contracts — enabling automated execution at scale.
Contact
To learn more about forward payment contracts—or if you are interested in participating in the beta —contact our CSM team at [email protected] or your account manager.