Forward Exchange Contracts

A Forward Exchange Contract (FEC) is a contract between the bank and their customer whereby the bank agrees to buy from or sell to the customer a fixed amount in foreign currency on fixed future date, or during a period expiring on a fixed future date, at the rate of exchange quoted in the contract.

Banks can provide an FEC in all major currencies, for the protection of exporters and importers who are subject to exchange risks in the course of their transactions. FEC’s may be entered into to cover customers exchange risk between a foreign currency and Australian dollars or between two foreign currencies. Discuss your Foreign exchange risk with your Arab Bank Australia Relationship Manager, Trade Finance for further advice.

Key Benefits

  • Contracts can be arranged to either buy or sell a foreign currency against your domestic currency, or against another foreign currency.
  • Available in all major currencies.
  • Available for any purpose such as trade, investment or other current commitments.