Forward settlement and sale of foreign exchange refers to the transaction that a customer reaches an agreement for forward settlement and sale of foreign exchange with SRCB. Under the agreement, the currency type, amount, term and foreign exchange rate of foreign exchange settlement and sales in the future are agreed by two parties, and on the due day in the future, the transaction mentioned above should then be processed according to the specified terms.

Currency type

USD, HKD, EUR, JPY, GBP, AUD, CAD, SGD

Term

7 days, 14 days,1 month ,2 months, 3 months, 4 months, 5 months, 6 months ,9 months, 1 year

Features

The product allows customers to lock the foreign exchange rate in the future, namely to lock the costs or benefits in the future which play the role of both value maintenance and risk prevention.

Target Customers

Domestic institutions

Process

1. Sign Enterprise Customer Derivatives Business Agreement with SRCB

2. Submit application. Currency type, amount, term and foreign exchange rate of foreign exchange settlement and sales in the future are agreed by two parties.

3. On/before settlement date, customer uses valid vouchers and/or commercial documents to settle according to the specified terms.

Risk Warning

Once the cost of foreign exchange rate is locked, customer will not gain the extraneous earnings when foreign exchange rates fluctuate towards the favorable direction.