an agreement between two parties to set exchange rates in advance.
a contract to buy or sell a specific number of foreign currency at an exchange rate established today for delivery in the future
An over-the-counter contract negotiated by the AOFM with the Reserve Bank of Australia to trade foreign exchange at a specified price that will be applied at a specified future date.
Foreign exchange contracts that are constructed to mature and be settled at a future date. They are priced by adjusting the spot rate to reflect the interest rate differential between the two currencies involved for the forward period. They are used to hedge against future value fluctuation by locking in future price or rates.
Exporters can hedge against the risk of adverse exchange rate movements by using a forward foreign exchange contract. You agree to sell the bank a particular foreign currency at a fixed future date for a price that is set now.
A financial transaction in which two counterparties agree to trade foreign exchange at a specified price at a specified future date. The AOFM undertook forward foreign exchange contracts with the Reserve Bank of Australia to alter the level of foreign currency exposure in the Commonwealth debt portfolio.