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

• A company has been granted a concession to invest in a country’s telecommunications system, and needs to import tools and equipment worth USD 5 million from overseas with a condition that it repays USD 1 million per year.
• A company enters into a Par Forward transaction with the Bank for five years at an agreed fixed rate throughout the term of the contract.

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 transaction limits suitable for each customer.

For more information, please call (66) 0 2021 1155

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