FX Forward

FX Forward and Non Deliverable FX Forward (NDF)

FX Forward

Foreign currency purchase based on preferential foreign exchange rate at a specified future date. Intended for protection of future monetary flows. FX forward rate is calculated based on current market exchange rate and the difference of market interest rates for the currencies of a currency pair of the FX forward contract.

Non Deliverable FX Forward

It represents forward transaction where there is no exchange of funds on the maturity date, but only the difference between the outright forward foreign exchange rate and reference foreign exchange rate (CNB, ECB on the delivery date), calculated on the contracted NDF amount, is calculated and paid. Product is mostly applied to protect the balance of foreign currency liabilities (amount of outstanding principal on foreign currency loan) on the date financial reports are created (quarterly or, usually, 31 December).

Contacts

Institutional Sales Group
Tel: 072 37 2288
Corporate Sales Group
Tel: 072 37 2222

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