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Introduction
FX Forward (outright) contract refers to the transaction of foreign exchange settled on the agreed forward date and as per the agreed exchange rate by the company and our Bank. The tenor of FX Forward outright contract can range from 1 month to 6 months. Once the contract is made, it cannot be taken up before settlement date. We accept the contract in any major currency against SGD or USD.
We provide tailor made FX Forward (outright) product for company. By booking FX Forward outright contract with our Bank, the company can avoid the risk of FX fluctuation against them and fix the exchange rate cost.
Product Features
Foreign Exchange (FX) Forward Transaction is commonly used by the company to avoid foreign exchange risks and to fix foreign exchange cost. When a company deals in foreign trade, or invests in overseas, or takes up loans in foreign currency, or pays back foreign currency loans etc, the company will incur foreign exchange risks. By doing FX Forward transactions, the company can fix in advance the foreign exchange cost, or lock in the foreign exchange rate so as to avoid facing the risk of foreign exchange rate fluctuation against them.
Eligible Applicants
Company Customers
Application Requirements
Companies can carry out the transaction by establish FX credit facility or by margin.
Application Procedures
The FX Forward product is for our customer to hedge their future exposure to foreign exchange risk. Customers who wish to deal FX Forward transaction with our Bank must have Import / export, or other business transaction backgrounds.
There are two ways of dealing FX Forward with our Bank:
(1) By credit limit: The customer who can fulfill the credit assessment requirement of our Bank will be given respective FX forward limit.. The customer will be able to transact after the agreement and documents are signed in accordance with the required procedure.
(2) By margin: The customer who has placed the required margin with our Bank and signed the necessary agreement will be able to transact FX Forward. Any outstanding FX forward contract will be mark-to-market and additional margin may be required if any unrealized loss occurs.
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