HSBC is one of the active players in the foreign exchange market, quoting competitive prices in USD/PKR spot as well as forward.
We can help you manage your risk exposures in invoicing imported and exported goods. These risks are minimised by using a range of products available to develop a suitable hedging strategy.
There are three basic alternatives to manage your risk exposure
READY/SPOT
A foreign exchange deal (to buy or sell) that is settled within two working days. USD/PKR deals can be settled on the same day.
FORWARD OUTRIGHT (FWD-O/R)
An agreement used in foreign exchange transactions that is settled within two or more working days.
OPTION FORWARD (OFD)
An option forward is a binding contract in which the bank sells a specific amount of foreign currency to a customer at an agreed exchange rate within a specific time period.
FOREIGN BILL PURCHASED (FBP)
A cash advance made to customers against their export bills received from a foreign buyer through Documentary Credit Collections, either on Documents against Acceptance (DA) or Documents against Payments (DP) basis.
FORWARD/ FORWARD DISCOUNTING
A forward discounting to be made on a forward date to settle a forward cash flow obligation.
FOREIGN CURRENCY TRADE LOAN (FCY LOAN)
Loans against imports are available to customers when they purchase goods under Documentary Credit or Documentary Collections terms. Pre-shipment finance is also available to customers to meet their working capital requirements. Advances are granted upon production of a buyer's contract or export Documentary Credit.
CROSS CURRENCY HEDGING
Customer can hedge their exposures in other currencies (eg GBP, JPY, CHF, EURO or any other currency) against US dollars in forward.
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