Uitgelogd

U bent succesvol uitgelogd.

ABN AMRO

Treasury Management

Manage foreign currency and foreign exchange risks

Targeted management of foreign exchange risks

  • Protection from unfavourable currency fluctuations
  • Secure margins
  • Manage foreign exchange flows

Do you do business internationally? And do you pay or get paid in foreign currency? This may expose you to risk, because exchange rates move, which can negatively impact your company’s profits. In order to attain a higher degree of certainty we offer solutions to help you protect your business from unfavourable exchange rate fluctuations.

We have a number of products for your treasury management

FX Spot

With a spot transaction you buy or sell the foreign currency as soon as you have collected the money or are ready to pay. Quick and easy, and at the current market rate.

FX forward

With a Forward contract, you agree upon a rate at which you will buy or sell a currency on a certain later date ("the forward rate").
This gives you certainty in advance about what your foreign exchange transaction will cost. And you know in advance exactly what a contract with a foreign business partner will cost you in euro.

With a forward contract you are less susceptible to market rate fluctuations. You will have more certainty about the amount that you will need to pay or receive in the future.

FX Swap

A swap is a combination of a spot and a forward transaction. With a foreign exchange swap, you are exchanging different currencies with the bank for an agreed upon period of time. You agree to buy or sell a certain amount of a foreign currency from or to the bank, and at a later date to sell or buy back the same amount to or from the bank, at predefined exchange rates. For example, you could convert a surplus in one foreign currency into another, or change the date of a previously agreed upon forward.

The FX Roll is a variant of an FX Swap. The FX Roll allows you to extend or shorten the settlements date of an open FX Forward position. Like an FX Swap, an FX Roll has two underlying transactions that are executed simultaneously. One transaction to reverse the previously executed FX forward transaction on the original settlements date and one transaction to realize settlement on the new desired date. 

With a fx swap you are less susceptible to market rate fluctuations. You will have more certainty about the amount that you will need to pay or receive in the future.

This product is particularly suited for managing settlement risk if there is a delay in incoming cashflows or if you need to pay earlier than anticipated. FX Roll transactions can be applied to open FX Forward contracts and are only available via the Franx platform. Within the Franx platform the trade you want to change the settlement date for can be selected. Franx will display the real-time rates that are applicable for the new settlement date.

FX option

Purchasing a foreign exchange option (call or put) gives you the right, but not the obligation, to sell or buy a certain amount of foreign currency at an agreed upon date and time. With a Foreign exchange option, you can protect yourself against unfavourable rate movements. But what if the rate moves in your favour? Then you are free to buy or sell the currency at the more favourable market rate. You pay a premium in advance for a foreign exchange option.

With a fx option you are less susceptible to market rate fluctuations. You will have more certainty about the amount that you will need to pay or receive in the future.

Structured product

A combination of different types of options (call, put, barrier). Different combinations are possible. The difference to a standard option is that, in addition to a right, there may also be an obligation. Examples of structured products are a Cylinder and a Forward Extra.

With a structured product you are less susceptible to market rate fluctuations. You will have more certainty about the amount that you will need to pay or receive in the future.

Overview of all products

The above is a quick summary. A complete overview of all products and their associated features can be found in the PDF file.

We have a number of products for your treasury management

FX Spot

With a spot transaction you buy or sell the foreign currency as soon as you have collected the money or are ready to pay. Quick and easy, and at the current market rate.

FX forward

With a Forward contract, you agree upon a rate at which you will buy or sell a currency on a certain later date ("the forward rate").
This gives you certainty in advance about what your foreign exchange transaction will cost. And you know in advance exactly what a contract with a foreign business partner will cost you in euro.

With a forward contract you are less susceptible to market rate fluctuations. You will have more certainty about the amount that you will need to pay or receive in the future.

FX Swap

A swap is a combination of a spot and a forward transaction. With a foreign exchange swap, you are exchanging different currencies with the bank for an agreed upon period of time. You agree to buy or sell a certain amount of a foreign currency from or to the bank, and at a later date to sell or buy back the same amount to or from the bank, at predefined exchange rates. For example, you could convert a surplus in one foreign currency into another, or change the date of a previously agreed upon forward.

The FX Roll is a variant of an FX Swap. The FX Roll allows you to extend or shorten the settlements date of an open FX Forward position. Like an FX Swap, an FX Roll has two underlying transactions that are executed simultaneously. One transaction to reverse the previously executed FX forward transaction on the original settlements date and one transaction to realize settlement on the new desired date. 

With a fx swap you are less susceptible to market rate fluctuations. You will have more certainty about the amount that you will need to pay or receive in the future.

This product is particularly suited for managing settlement risk if there is a delay in incoming cashflows or if you need to pay earlier than anticipated. FX Roll transactions can be applied to open FX Forward contracts and are only available via the Franx platform. Within the Franx platform the trade you want to change the settlement date for can be selected. Franx will display the real-time rates that are applicable for the new settlement date.

FX option

Purchasing a foreign exchange option (call or put) gives you the right, but not the obligation, to sell or buy a certain amount of foreign currency at an agreed upon date and time. With a Foreign exchange option, you can protect yourself against unfavourable rate movements. But what if the rate moves in your favour? Then you are free to buy or sell the currency at the more favourable market rate. You pay a premium in advance for a foreign exchange option.

With a fx option you are less susceptible to market rate fluctuations. You will have more certainty about the amount that you will need to pay or receive in the future.

Structured product

A combination of different types of options (call, put, barrier). Different combinations are possible. The difference to a standard option is that, in addition to a right, there may also be an obligation. Examples of structured products are a Cylinder and a Forward Extra.

With a structured product you are less susceptible to market rate fluctuations. You will have more certainty about the amount that you will need to pay or receive in the future.

Overview of all products

The above is a quick summary. A complete overview of all products and their associated features can be found in the PDF file.

Laptop

Digital Channels

ABN AMRO

Expertise

Do you have any questions? Please contact our FX specialists:

 

ABN AMRO

Fixing rate information

Currency rates are affected by various factors. These include, for example, purchasing power, monetary policy, sentiment, politics, and central bank interventions. Check out the historical rates.

Light bulb