Detailed Information

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.

Example

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.

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

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.

Contact information

Head of the Global Markets

Global Market Sales

Trading in FX and Interest-Rate Instruments