Payment Services, FX risk protection

In order to eliminate foreign currency risk, i.e. the risk of losses due to money market fluctuation, ProCredit Bank offers importers the option of currency forward contracts.

Quasi forward sales of foreign exchange imply an agreement to execute a transaction at a specified future date, at a pre-determined price and in a pre-determined amount.

This hedging instrument removes all uncertainties with respect to currency fluctuations, as clients are guaranteed a fixed exchange rate on the date of the agreement to purchase a currency on a certain future date.

If you opt for this type of hedging, you undertake to pay the agreed amount of funds into the account with the bank on the date of the transaction agreement, which the bank then transfers into a term deposit account on the same day.

Quasi forward sales of foreign exchange refer to a term of more than two days but shall not exceed one year.

Should you require any further information, please visit the nearest ProCredit Bank branch.