An FX Forward contract allows you to lock in the exchange rate for the purchase or sale of currency on a future date. This action protects you from foreign exchange rate fluctuations. EBC’s FX Forwards can have a value date of three business days up 365 days from the trade date. If the contract has a value date within two business days of the trade date on which you entered into the transaction, it is an FX Spot Deal.
When you have a foreign invoice or other payable or a receivable that has a term (30, 60, 90 days or more), there is a likelihood that the price of that foreign currency will change during the term – either upwards or downwards. If you are a manufacturer and paying a supplier for parts and have to pay an invoice in Euro, an upward movement in the exchange rate would result in higher costs. However, if you are an exporter, this would result in foreign currency receipts being worth less. By using an FX Forward with Exchange Bank of Canada, you can lock in a Foreign Exchange Rate determined today for settlement at a future date to match the terms of your payable or receivable (Value Date).
In the past, my company used services like World Remit or traditional wire transfers through our bank but EBC has made it super convenient to send money from the comfort of our offices. The service is excellent and the processing times are very quick!
Richard Adejumo, Business Owner
EBC makes paying international suppliers easy and saves us money with great FX rates!
Jeremy Anderson, President
Reliable service, speed of delivery, and feels like teamwork. Trust regarding sending your product first, pay you a day later.
Robert Djonev, Owner