Forward Transaction of Foreign Exchange

Forward Transaction of Foreign Exchange refers to the foreign exchange transaction on a foreign exchange rate agreed by the customer and Bank of China under a foreign exchange contract, and for delivery on an agreed day, which is generally a certain day after 2 working days after the transaction.

1. A customer entrusts one bank with the purchasing of a certain currency and the selling of another currency at a contractual foreign exchange rate on a specified settlement day to achieve the conversion between various foreign currencies.
2. The risk of the exchange rate is completely locked, and the foreign exchange rate of delivery day in the future is determined on the transaction day.

It can meet the customer's demand for transactions among foreign currencies some day in the future, to company's settlement of import and export trade and so on.

1. A specified trading period less than one year and more than two banking days is determined according to customers' demands.
2. Applicant is required to have credit limit.

1. Signature of an agreement: Before a forward foreign exchange transaction is carried out with Bank of China, the applicant is required to reach related agreements with Bank of China. 
2.  Implementation of margin: The applicant shall have credit limit.
3.  Inquiry: The applicant determines the details of a forward foreign exchange transaction and makes the corresponding inquiry to Bank of China.
4. Transaction conclusion: after concluding the transaction, Bank of China will deliver the transaction confirmation to the applicant in written form.
5.  Settlement: the actual settlement shall take place on the settlement date. The applicants may require the bank to unwind the transaction or give the extension period to the transaction before the settlement date according to its needs.