Foreign exchange

We offer foreign exchange derivative products to help clients mitigate current and future foreign currency exposures.

• Optimise short-term cash management strategies
• Cash conversion of positions into another currency
• Reduce impact fluctuations in foreign exchange rates

Exposure to foreign exchange risks can happen in any number of ways: through your customers’ payments in a foreign currency, your own commitments in a foreign currency, or assets and liabilities on your balance sheet in a foreign currency. Other potential foreign exchange risks may lie in your subsidiaries, investments or divestments, or repayment in loans and/or bonds in a foreign currency.

We can provide you with a multitude of solutions and flexibility:

• FX Spot - an FX Spot transaction allows you to buy or sell immediately at the current exchange rate. Having an appropriate execution strategy is necessary since exchanging large amounts of foreign currency can cause fluctuations in the market.

• FX Forwards - currencies are exchanged at an agreed date in the future and at a predetermined exchange rate set at inception. An FX Forward is the most common and basic strategy to hedge against future currency risk.

  • FX Forward product description in Dutch

  • FX Forward product description for Belgium, in English

  • FX Forward product description in French

• FX Swap - This option involves two simultaneous currency transactions. One transaction is immediate, or on the spot, and the other is inverse through a forward contract. An FX Swap allows you to exchange a current excess or deficit in a foreign currency into your local currency, and reverse this at an agreed date in the future at an predetermined exchange rate.

  • FX Swap product description in Dutch

  • FX Swap product description for Belgium, in English

  • FX Swap product description in French

If you have the required knowledge and experience on the below instruments, you can also look at the possibility to use FX options:

• Purchase of an FX Option - you have the right but not the obligation to buy or sell a currency against another one at a pre-agreed exchange rate on a specified date. You know your worst case scenario while keeping the possibility to benefit from a potential positive market evolution. The FX option purchase comes at a cost: you need to pay a premium.

• FX Option structures - We can assess your situation and requirements on a case-by-case basis to offer you the best foreign exchange hedging solution at the right moment.

Several other products are available to you such as FX Non-deliverable Forwards/Strategy, FX Exotic Options, and many more tailor-made (often zero-premium) FX Option structures. We can assess your situation and requirements on a case-by-case basis to offer you the best foreign exchange hedging solution at the right moment.