Managing foreign exchange and interest rate risks
Financial markets include specialized banking solutions that enable legal entities to effectively manage foreign exchange and interest rate risks , improve financial planning, and ensure business stability in changing market conditions.
Within the foreign exchange market , clients have access to buying and selling foreign exchange at market conditions, as well as forward buying and selling of foreign exchange , which enables the pre-definition of the exchange rate for future transactions and better predictability of cash flows. These solutions are particularly important for companies that do business internationally and want to reduce the impact of exchange rate fluctuations on their operations.
For clients who have exposure to changes in interest rates, interest rate hedging solutions are available, including interest rate swaps (IRS) .
Through professional support and an individual approach, we help clients select solutions from the financial markets that are in line with their business goals, liability structure, and risk tolerance.
Buying and selling foreign currency
Buying and selling foreign currency enables the conversion of one currency into another at the currently valid market rate, for the purpose of making international payments or managing foreign exchange assets.
Forward foreign exchange trading
Foreign exchange purchase and sale where the contracting parties undertake to exchange one currency for another in the future at a pre-agreed (forward) exchange rate. It enables protection against exchange rate fluctuations as well as planning for future cash flows.
Interest Rate Swap (IRS)
An interest rate swap is an exchange of interest flows based on a variable or fixed interest rate without an exchange of principal. It enables predictability of cash flows as well as fixing of financing costs related to a variable interest rate regardless of its movement.