Foreign Exchange

FX Forward

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 CNY 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:

Trade date: 8 January 2013

Spot rate: 1.2200

Settlement date: 1 month later (8 February 2013)

Principal amount: USD 1 million

Forward rate: 1.2198

 

 

Why choose DBS FX Forward?

  • Leverage our expertise and award-winning services, which make us one of the best FX houses in Asia. DBS was voted the Best Treasury and Cash Management (Foreign Bank) in China for 2011 and 2012 by Global Finance
  • Enjoy competitive pricing due to our market leader position and extensive network
  • Stay informed of the latest market developments with insights from more than 100 DBS research analysts in Asia
  • Identify and hedge against the potential risks you face when doing business overseas with strategic advice from our dedicated SME advisory sales team
Get in touch

DBS BusinessCare: 400 821 8881

Get in touch

DBS BusinessCare: 400 821 8881

Awards
Best Bank for Treasury and Cash Management (Foreig

Best Bank for Treasury and Cash Management (Foreign) 2015

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