Corporate

• Opening of Accounts and Payment Transactions
• Direct Debit
• Deposits
• FX Operations and International Payment Transactions
• Credit Operations
• Documentary Operations and Guarantees
• Electronic Banking

Protection from exchange rate risk – forward purchase and sale of foreign currency

Currency forward contract protects legal entities (clients) from unfavourable movement of exchange rate. Technically speaking, client locks-in exchange rate at which the entity will purchase / sell currency on agreed future date.

  Advantages:

• Complete protection from foreign exchange risk
• Guaranteed foreign exchange rate in the future
• Possibility to anticipate cash flows originating from FX transactions, owing to pre-agreed exchange rate in the future
• Contract term – from one week to 6 months
• No expenses

What are the advantages for importers?

• Elimination of currency risk, i.e. change in price of one currency against another
• Increase of sales – Sellers which invoice goods by connecting their claims to a foreign currency see decrease in sales because in uncertain conditions buyers most frequently select sellers that invoice their goods in RSD. By knowing exchange rate in advance, company can bill its customers in RSD, without fear that it will be exposed to negative currency exchange differences.

What are the advantages for exporters?

• Elimination of currency risk, i.e. change in price of currency against another
• Higher exchange rate is achieved by forward sale of foreign currency than the current, market exchange rate

Covered currency forward contract implies that you exchange RSD for some other currency from the exchange rate list at more favourable exchange rate, pay RSD equivalent on the same date when forward is agreed, and receive purchased currency on the desired date in the future.