Term buying and selling of foreign currency (Forward)


Currency forward contract

The longest possible date of forward processing is 6 months. In order to be able to conclude the forward transactions with Banca Intesa, it is necessary that the client does the following with his client manager at the bank:

  • sign General Contract about currency forward where forward transaction is described in detail
  • agree the limit amount for nominal sum, term and type of currency where he would forward transactions.

Having fulfilled certain conditions, client performs forward buying and selling of currency in the same way as it is with normal (non term) transactions of buying and selling of foreign currency; that is the client:

  • contacts dealer of the bank
  • asks for the fee for certain type (buying or selling) and term of effecting forward
  • having received asked information he brings the decision whether to accept offered conditions
  • in case of accepting the conditions, concludes forward transaction
  • continues its dealings with completely eliminated foreign currency risk (for the sum on which covered forward is concluded)
  • on the date of effecting of the forward gets the purchased sum of foreign currency for disposal (that is effects payments in accordance with the law about Foreign currency dealing).
  • can conclude new forward transactions during duration of previously concluded.

Covered currency forward contract

Enables you to under better exchange rate purchase some of the currency from the currency list for dinars under which you make the payment of dinars equivalent value on the same day, and the selected currency you receive on the chosen future date. For confirming the Covered currency forward it is not necessary to sign neither the General contract nor making an agreement of the limit amount.

For confirming the Covered currency forward it is not necessary to sign neither the General contract nor making an agreement of the limit amount. The client:

  • contacts Banca Intesa dealer
  • asks for the fee for certain type (buying or selling) and term of effecting forward
  • having received asked information he brings the decision whether to accept offered conditions
  • in case of accepting the conditions, concludes forward transaction
  • continues its dealings with completely eliminated foreign currency risk(for the sum on which covered forward is concluded)
  • on the date of effecting of the covered forward gets the bought sum of foreign currency for disposal ( that is effects payments in accordance with the law about Foreign currency dealing).
  • can conclude new Covered forward transactions during duration of previously concluded.