Forward Exchange Contracts
A Forward Contract is an agreement that allows you to fix an exchange rate for a future transfer so that you know what the exchange rate will be at the time the transaction takes place.
- Lock in an exchange rate for use anytime between two days to 12 months in the future
- Keep your profit margins intact with a currency strategy that suits your business needs
- Protect a large purchase from exchange rate fluctuations during settlement or invoice periods
- Pay overseas suppliers at the contracted rate without blowing your budget due to market movements
- Forward Contracts can help minimise exposure to currency fluctuations but there are some downsides, such as if the exchange rate moves in your favour. Speak to an OFXpert about what could work for you, or read more here.