Protect your business from exchange rate volatility
Protect your foreign currency receivables and payables from exchange rate volatility with a DBS FX Forward contract. FX Forwards fix the exchange rate for a particular date in the future, whether it’s days, months or years. The exchange is completed on that date at the pre-agreed rate, regardless of the prevailing market rate.
For example, if you expect to receive a USD payment from an overseas buyer in a month’s time, you will need to exchange such USD proceeds into IDR in a month’s time. However, you may also want to hedge against USD depreciation in the interim. That’s why you may wish to enter into a FX Forward contract as below:
Spot date: 8 January 2013
Spot rate: 9623.00
Value date: 1 month later (8 February 2013)
Principal amount: USD 1 million
Forward rate: 9622.00
Why choose DBS FX Forward?
Being one of the leading banks in Asia, DBS is perfectly placed to help deliver the best possible pricing available to you. We not only strive to remain competitive, but to actually lead the market.
Our Economic Research Team produces a daily breakfast summary of the latest market trends, updates and FX rates.
How do I apply?
Please call us at +62 21 2988 4000 and we will arrange for a treasury specialist to speak with you.