FX services can help manage a business's cash flow through improved planning of cross-border payments. Spot foreign exchange, forward exchange contracts and derivatives are the three most commonly transacted foreign exchange services that allow businesses to better budget their cash flow based on the guaranteed pre-determined exchange rate. FX Swaps and Options are available on a discretionary basis appropriate to clients’ needs.
Equipped with a wide range of leading financial tools, our extensive team of global markets specialists provides the best-in-class advisory information and recommendations tailored specifically to your business needs. We offer solutions by limiting risk and maximising returns through easy and flexible foreign exchange services.
A simple FX Forward contract, determined on the basis of the spot rate and the interest rate differential between the two currencies involved, is an obligation to buy or sell a certain amount of foreign currency on a certain date in the future.
This allows a company to hedge against currency movements between the date of ordering goods and their delivery and carries little risk if the deal goes through smoothly.
These contracts can differ in detail：
- Vanilla FX Forward contracts
Foreign exchange can be traded through a number of different vehicles or options, each of which will suit different enterprises in different situations, and all of which can be handled by our team of business banking specialists throughout the world.
FX Options give the holder the right (but not the obligation) to buy (Call) or sell (Put) a given amount of one currency against another at a predetermined price (the Strike) on a given date. This provides extra flexibility over an FX Forward contract and can be an ideal yield enhancement tool for companies with excess liquidity.