Ист Вест Форекс Инвест

Foreign exchange risk is often present when conducting business overseas. Constant exchange rate fluctuations could mean significant income uncertainty for your business. Locking into exchange rates with East West Bank can help eliminate this uncertainty.

We provide customized tools and hedging strategies for a wide range of international transactions. Offering to receive or pay in the local currency can benefit both you and your vendor, improve cash flow and avoid unnecessary challenges. Our FX advisors have the experience and market insight to help you manage foreign currency exposure and strengthen your international financial position.

Spot Contracts

Exchange one currency for another for delivery in one to two business days from the transaction date. This is ideal if your company makes or receives payments in foreign currencies.

Forward Contracts

Exchange one currency for another for delivery beyond two business days from the transaction date. Forward rates are based on the spot rate adjusted for the differences in interest rates between the two countries. If your company has predictable cash flows in foreign currencies, using forward contracts can help protect against possible adverse movements of exchange rates (also known as hedging).

Window Forward

A window forward is a forward contract that is useable during a future period. You may draw down the principal balance between the start date and the end date of the window period. This is ideal if your company has regular but unpredictable cash flows in foreign currencies. This type of contract gives you flexibility with the timing of the conversion while maintaining a set conversion rate throughout the window. Accounting departments generally find the flexibility of window forward contracts extremely convenient, being able to pay a multitude of invoices using only one contract.

Non-Deliverable Forward

Use this contract to hedge foreign currency risk where no traditional forward market exists (such as Mainland China, India, and Brazil). No delivery of foreign currency occurs under this contract: The contract is net settled in U.S. dollars to offset the change in market pricing of the hedged foreign currency. This is ideal if your company has foreign exchange exposure in countries where a freely traded forward market does not exist. This type of hedge is used to protect the margins of U.S. dollar-based cash flow.

Foreign Currency SWAP

This contract simultaneously combines the purchase and sale of one currency against another with two different value dates. This is ideal if your company already holds forward contracts that need to be adjusted due to timing issues or exposure changes. You can also use it to hedge intercompany loans in foreign currencies with predictable payback schedules.

Foreign Currency Option

This contract gives you the right, not the obligation, to buy or sell a currency using a call/put option against another at a specified rate (known as the strike price) at a specified date in the future. This is ideal if your company is willing to pay a premium hedge against downside risk while receiving unbounded upside potential. Options are often used to set an exchange rate for a transaction that is still being negotiated, for example, during the due diligence period of a foreign acquisition.