FX Forwards allow you to confidently hedge and manage foreign exchange exposure by entering into a contract with the Bank to buy or sell foreign currencies in advance for trading, services, lending and international investment transactions, so you can deliver on a specific future date as agreed with your business partners purchase orders, off-shore loan repayments, etc. This enables you to lock-in your future foreign currency revenue and expenses.
 

• Exporters
  Protect your business from foreign exchange volatility by entering into a FX Forward Contract Bought with the Bank. The Bank will agree to buy foreign currencies in advance according to the specified currency, exchange rate, amount, and term. This will enable you to precisely estimate the selling prices of your goods and your expected revenue.
• Importers
  Determine exact costs of import goods by entering into a FX Forward Contract Sold with the Bank. The Bank will agree to sell foreign currencies in advance according to the specified currency, exchange rate, amount, and term. This will enable you to estimate the cost of goods.
   

Two Options for FX Forwards

 

To suit the financial management of businesses, the Bank offers two options to hedge against currency fluctuations:
 

• Outright FX Forward Contract
  A type of forward contract in which you agree to buy or sell a given amount of foreign currency at a pre-determined rate on a specific time in the future. This is suitable when you know exactly your settlement date.
• Flexible FX Forward Contract
  A type of forward contract in which you agree to buy or sell a given amount of foreign currency at a pre-determined rate on a specific time in the future. Besides, the forward can be used for settlement multiple times within contract maturity date. This offers you flexibility when you are uncertain about your settlement date.
   

Service Conditions

 

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 forward contract limits suitable for each customer.

Documents Download