Services - Managing Currency Risk

Forward Contracts

  • Secure exchange rates today for transactions anytime between three days to one year in the future.
  • Forecast budgets, profit margins, and price lists without worrying about currency fluctuations affecting your bottom line.
  • Low contract minimums and minimal interest-earning security deposit requirements.

Manage future risk by locking in a exchange rate

Forward Contracts let you lock in a rate today for delivery of funds on a future date. Once a rate is secured, your Shekel equivalent is fixed for the duration of the contract, thereby protecting your profits or price from erosion. This highly effective tool for managing currency risk can be used for both payables and receivables.

Forex Israel offers an array of market monitoring services that can help you lock in your cost when the market is at a favourable rate for you. When combined with Holding Balances, Forward Contracts can let you buy in larger amounts and reserve those funds to draw on as needed.

Contract terms may be as short as three days or as long as 18 months. Flexible delivery dates are available so that you can take final delivery of your funds during a 1 to 30-day window or extensions can be provided if you need to reschedule the delivery date beyond the original contract.

Short Forwards

Lock in a favourable rate without having to make a deposit
Foreign exchange markets are constantly in fluctuation and will often experience sudden, short-lived spikes. Short Forward Contracts help companies take advantage of market opportunities without requiring them to put down a deposit on the funds. This type of Forward Contract is available for 3-14 days with an optional 30-day flexible window, giving companies up to 44 days to take delivery of their funds and settle their order.

Please contact us to find out more about this service!