FX Forwards

Details

FX forward is a contract to exchange a predetermined amount of one currency for another at an agreed date in the future – minimum 3 days after the contract date and maximum one year – based upon a rate of exchange determined at the trade date of the contract.
 
Purpose

To enable clients to pay their liabilities on a predetermined future date.
Advantages

The advantage of this product for the client is the fact that the exchange rate is fixed to a predetermined future date, thus hedging the exchange rate at which the transaction will be performed (currency hedging).
 
Prepaid FX Forwards

Details

Pre-paid FX forward is a contract to exchange a predetermined amount of one currency for another (one being RSD, the other a foreign currency) based upon a rate of exchange at the trade date of the contract, where one currency (RSD) is delivered on the trade date of the contract, while the other (foreign currency) is delivered in advance at an agreed date in the future – minimum 3 days after the contract date and maximum one year – based upon a rate of exchange determined at the trade date of the contract.
 
Purpose

To enable clients to pay their liabilities on a predetermined future date.
 
Advantages

The advantage of this product for the client is the fact that the exchange (foreign exchange/RSD) rate is fixed to a predetermined future date, thus hedging the exchange rate at which the transaction will be performed.