Foreign exchange forward

Simplest method of covering exchange risk is to enter into forward contract. Forward contract is a binding obligation between the Bank and the customer to buy or sell a certain amount of foreign currency at a pre-agreed rate of exchange, on a certain future date.

Key features and benefits:

  • Protection against adverse movements in exchange rates.
  • Binding obligation to deal at a specific rate and future date.
  • Ensuring certainty of cash flows and protection of profits.
  • No upfront costs involved.

We provide Forward foreign exchange contracts with any combination of following foreign currencies: USD, EUR, GBP, RUB, CHF, CAD, AUD, AED, CNY, HKD and JPY.

 

Important notice:

  • The amounts payable by the Customer to the Bank in accordance with the Forward Contracts concluded under Forward Line Agreement are debited by the Bank from the Customers bank accounts held with the Bank irrespective of the type and the currency of the account, and if necessary exchange those into Armenian Drams at the sale rate of the foreign currency defined by the Bank at the moment of charging and debit it.
  • When receiving orders for forward transactions from the customer, the terms related with the timing customer contacting, orders accepting and processing are regulated by Forward Line Agreement.
  • To conclude a Forward Transaction the authorized representative of the Customer contacts the Bank via authenticated telephone to the specified Bank numbers and agrees the terms of the Forward Transaction with the authorized employee of the Bank. After agreeing the terms of the required Forward Transaction verbally between authorized employee of the Bank and the authorized representative of the Customer via telephone, maximum within 1 business days the Parties shall sign a Forward Contract with the agreed terms.
  • Forward Line Agreement shall enter into force from the moment of its signing and shall be effective for indefinite period.
  • Provision of statements/ advices as per Bank tariffs.
  • The Bank executes Forward deals in over the counter (OTC) by presenting buy/sell offers for FX.
  • The Client should only sign up for a FX Forward if the Client is prepared to keep it for the length of the term. If the Client wants to terminate the FX Forward early, HSBC might have to charge the Client an ‘exit cost’ should HSBC incur costs as a result of the termination. This could be significant.
  • In case the Debt towards the Bank under this Agreement is not immediately paid it is the penalty (annual interest rate) is being applied, which is calculated on the amount of the debt to be paid from the day it was due to payment (the Exchange date or unilateral termination day of the agreement, accordingly) till actual payment date. The total amount of all penalties under this Agreement cannot exceed the principal debt amount at the given time.

Call us on:

+37460 655 000

Our phone lines are open 24/7

Last updated on: 22/11/19 18:47 UTC

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