Foreign Exchange Market: Spot, Forward, Options
At CIBC, we offer our clients access to a dedicated professional team able to formulate and implement comprehensive risk-management strategies using foreign exchange products.
Global competition demands that more companies compete on an international market and buy and sell in foreign currencies. Our Foreign Exchange products can help mitigate your risk, and our team will guide you every step of the way.
We offer coverage of all major Caribbean, G10 and emerging market currencies.
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FX SpotFX Spot allows companies to buy and sell currencies at an agreed rate for settlement at an agreed time. We offer competitive FX Spot rates on most currency pairs, including all Caribbean local currencies (i.e. BBD, TTD, JMD, BSD, XCD, KYD, ANG, GYD) and cross-rates. |
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FX ForwardThe FX Forward contract allows you to lock in an exchange rate for a specific currency amount on a specified date in future. You are committing to deliver a pre-agreed and fixed amount of one currency for another on a specified date in the future. |
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FX OptionsFX Options are innovative products to manage foreign exchange risk exposure. As an importer, if the value of the currency in which you trade increases, your import products will become correspondingly more expensive. Conversely, as an exporter you can find yourself at a disadvantage if currency rates fall. FX Options are contracts that, for a fee, guarantee a worst-case exchange rate for the future purchase of one currency for another. If you purchase an FX Option you have no obligation to use the fixed exchange rate. Foreign exchange options thus protect you against unfavourable currency movements while allowing you to participate in favourable movements. Typically this product is available for G10 currencies G10 currencies: USD|CAD | EUR | GBP | AUD | NZD | CHF | NOK | SEK | JPY. |
FX Swaps
FX swaps are another product that enables you to manage foreign exchange risk exposure by giving you certainty regarding the exchange rate and currency you prefer to be exposed to. The benefit of the product is it assists with financial planning and hedging costs.
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