The Currency Contract without physical delivery is a transaction for the purchase or sale of foreign currency, at a future date, by predetermined parity.
Financial settlement is based on the difference between this parity and the reference price on the maturity date. The operation allows protection against currency fluctuations, and is suitable mainly for exporting companies, importers and companies with assets and / or liabilities in foreign currency.
Among its advantages are:
- Flexibility - the size of the contract, the term and the exchange rate used in the settlement are freely negotiated between the parties
- Settlement at maturity
- Specific registration module
- Use of guarantees
Contract Modalities
- Simple Term: Allows the purchase / sale of foreign currency (against reais).
- Parity Term: It allows the purchase / sale of two currencies other than the real.
- Asian Term: The exchange rate for settlement of the contract is derived from the arithmetic or weighted average of the exchange rates at predefined dates.
- Term of Currency Term: It allows to indicate a future date for the fixation of the forward rate. The criterion for the choice is indicated in the register, based on the exchange of the future date, plus value or percentage.
The B3 offers three functionalities for this type of contract:
- Limiter in the Currency Term: Suits the client's strategy to specific scenarios, establishing floor and ceiling (cap) in buying and selling currencies.
- Pre-Paid Coin Term Award: Mitiga credit risk, since one of the parties (buyer or seller) can receive premium at the beginning of the operation. This will benefit customers with difficulty in approving lines of credit or who have no limit available for new transactions.
- Shift Forward in the Currency Term: It allows to establish a forward rate change over a period of time, provided that it is agreed between the parties and that market conditions are obeyed. Thus, when the shift mode is triggered, the record will contain the forward rate data.