Raiffeisen Bank 

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Infoline: 800 900 900

Exchange rate risks

FX Spot

Spot (prompt) foreign exchange transactions are the basic product of the foreign exchange market. Deals can be made through a direct telephone communication with employees of the Treasury Department and/or selectively through an authorized employee of the Corporate Banking Department. For prompt foreign exchange transactions, it is beside T+2 settlement (standard) also possible to arrange T+0 and T+1 settlements.

The Treasury Department at the same time offers monitoring services for required levels of exchange rates, realization of orders at the exchange rate levels set, including the option to place and order overnight.

The commonplace is the support in a daily market news form, detail monthly and quarterly analyses and direct support of the Economic Research Department.

FX Forward

Forward type transactions may be used for securing exchange rate risks in the future or for fixing the returns and expenses within the international business transactions.

Forward (term) foreign exchange transactions may as a standard be concluded in all major world currencies with the settlement currency within one year (if a corresponding limit for forward transactions is set).

The commonplace is the support in a daily market news form, detail monthly and quarterly analyses and direct support of the Economic Research Department.

FX Swap

  • FX swap operation is a combination of the spot transaction and the forward (term) transaction.
  • It is a purchase of a currency against other currency using spot value (T+2) and concurrent sale of a currency against other currency using forward value (i.e. as of particular date in the future).
  • The difference of the spot and forward rate depends directly on the difference of interest rates of respective currencies. The party holding better interest-bearing currency within the contract compensates the interest differential (expressed by the difference of the spot and forward rates) to its partner.

 


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