FX forward contract

The longest period of execution is 12 months. For a client to be able to conclude FX forward transaction contracts with Banca Intesa, the client should with their client manager:

  • Sign a general FX forward agreement specifying the details of the forward transaction
  • Determine the nominal amount limit, due date and type of currency for the forward transaction
After the said pre-conditions are met, the client performs the forward purchase of the currency in the same manner as with the ordinary foreign currency purchase (those without the term specified), i.e. the client:

  • Contacts Banca Intesa dealer
  • Requests the quoted price for a specific type (purchase or sale) and the forward due date
  • Upon receiving the requested information, the client decides whether to accept the terms offered
  • If the client accepts the terms, the forward transaction is concluded
  • Continues business operations having completely eliminated currency risk (related to the amount of the transaction)
  • On the FX forward transaction due date, purchases or sells the specified currency according to the previously agreed forward exchange rate
  • If necessary, the client may conclude new forward transaction contracts during the previously concluded ones.

Covered FX forward contract

Enables you to make a purchase in dinars, at a more favorable exchange rate, of a currency from the exchange list, whereas the payment of the amount in dinar counter value is performed as at the forward contract date, and the purchased currency is received on a desired future date. The longest due date for this type of forward contract is not limited. In order to conclude the covered FX forward, it is not necessary to sign a general agreement or to agree on the limit.

In order to conclude the covered FX forward contract, it is not necessary to sign a general agreement or to agree on the limit. The client:

  • Contacts Banca Intesa dealer
  • Requests the quoted price for purchase of a currency and the covered FX forward due date
  • Upon receiving the requested information, the client decides whether to accept the terms offered
  • If the client accepts the terms, the covered FX forward transaction contract is concluded and the amount in dinar counter value paid per the agreed exchange rate until the end of the same working day
  • Continues business operations having completely eliminated currency risk (related to the amount of the covered FX forward transaction)
  • On the covered FX forward due date, receives the purchased amount of foreign currency at their disposal (i.e. performs payments in accordance with the Law on Foreign Exchange Operations)
  • If necessary, the client may conclude new covered FX forward transactions during the previously concluded ones.

Partial FX forward contract

This product enables the client to harmonize the purchase of foreign currency for future payments with the dynamics of their dinar inflows i.e. to partially pay dinar amounts until the FX forward contract execution date at which time the Bank pays into the client’s foreign currency account the purchased foreign currency. The exchange rate at which the client purchases the foreign currency as at the desired future date is in-between the currency and covered FX forward exchange rate and depends on the time dynamics of the partial dinar payments. Partial forward contract due date is 6 months at most.

In order to conclude the partial FX forward contract, it is not necessary to sign the general agreement or to agree on the limit, however, it is necessary the first dinar payment to be made on the date when the contract is concluded and that the amount paid is at least 10% of transaction value. The client:

  • Contacts Banca Intesa dealer and requests the quoted price for purchase of a currency as at a specific date;
  • In accordance with the client’s dinar liquidity inflow, the client proposes dates and amounts when amounts in dinar counter value shall be paid according to the partial FX forward contract;
  • Discusses with the dealer several offered repayment schedules, and reaches the most adequate dynamics of payment of the amounts in dinar counter value;
  • If the offer is accepted, the client concludes partial FX forward transaction contract and receives a schedule with calculations in accordance with amounts and dates of the agreed tranches;
  • Continues business operations having completely eliminated currency risk and pays at specified deadlines each dinar tranche;
  • The client is obligated to pay into Bank account the amounts in dinar counter value according to received repayment schedule until due date.
  • On the partial FX forward contract due date, receives the purchased amount of foreign currency at their disposal (i.e. the client performs payments in accordance with the Law on Foreign Exchange Operations).