Par Forward is an agreement to exchange a series of cash flows over time from one currency to another currency with all exchanges occurring at the same exchange rate. Therefore, a Par Forward is a series of forward contracts at one agreed rate and the cash flows do not have to be of the same notional amount.
Example of a Par Forward
The transactions are subject to the Exchange Control Regulations set by the Bank of Thailand and must not be used for Thai baht speculation. The Bank will set transaction limits suitable for each customer.
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