FX Swap

Advantages for You

  • Protection against adverse FX rate developments
  • Pegging a future cash-flow in the company’s planning
  • A maturity of up to 24 months can be arranged

Detailed Information

A currency conversion when the client sells money in one currency for money in another currency at the spot rate and at the same time executes a repurchase at an agreed forward rate applicable at the time of the conclusion of the transaction.  An FX SWAP is a combination of a spot and forward transaction.

This type of transaction can also be used as a loan in the event of a cash shortage in one currency and a cash surplus in another.

Example

A company that exports raw materials (payments in EUR) sells its products on the Czech market and abroad (income in CZK and EUR). The company knows that it has to pay EUR 100,000 for imported raw materials, with the value T+2, but in a month it should receive a payment of EUR 100,000 for products it has exported. It has enough funds in CZK and is planning to pay the invoice on time, but does not wish to take on the FX risk. An FX Swap is a solution. The client buys EUR 100,000 with the value T+2, at the rate of 24.500 EUR/CZK, and agrees to the re-sale of that amount in one month for the forward rate of 24.400 CZK/EUR. The cost of the swap was CZK 10,000.

Advantages

  • 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
  • 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.

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

Contact information

Head of the Global Markets

Branko Sušić    +420 234 706 881   susic.branko@sberbankcz.cz         

Global Market Sales

Trading in FX and Interest-Rate Instruments

Martin Chum +420 234 706 890 chum.martin@sberbankcz.cz 
Filip Jelínek  +420 234 706 986 jelinek.filip@sberbankcz.cz 
Martina Lukesová +420 543 525 710 lukesova.martina@sberbankcz.cz 
Marek Bohumský +420 234 706 846 bohumsky.marek@sberbankcz.cz  

Možnosti kontaktování