Forward
(Updated at 14:30, 12/8/2010)

Forward transaction is an agreement between Agribank and a financial institution on exchanging a certain amount of a currency for another currency at a certain exchange rate on a certain a transaction date and payment date in the future, with the following details: the two parties, currencies involved, amount, exchange rate, transaction date, transaction term, payment date, payment instruction.
Main features

 

-          Transaction date: the day the contract is signed

-          Validity date: Spot payment date + transaction term

-          Forward rate is determined based on spot rate and differencedifferene between interest rate of bid currency and ask currency.

-          Forward rate = Spot rate + Forward point

-          Forward point = (Spot rate *Difference of interest rate * number of forward days)/360*100.

-          Transaction term: from 3 to 365 days.

 

Payment

 

-          Transfer via the Nostro account with foreign banks or with the Operations Centre of the State Bank of Vietnam.

 

Distribution Channel

 

-          For financial institutions customers: directly contact Foreign Exchange Dealing Department – Agribank Operations Centre.

 

Procedure/Technology

 

-          Forward is carried out by means such as: Reuters, phone, fax,...

-          Forward transactions with with financial institutions that have not participated in Reuters system is conducted by signing contract via Fax, the original contracts sent via EMS.

-          When dealing is completed, Agribank Operations Centre put the transacted data into the IPCAS system.

-          Chairman of BOD of Agribank determines the loss limit in fund and foreign exchange trading for Agribank Operations Centre.

-          Trading limits applying to financial institutions in each period are determined by General Director of Agribank.

Applied at Operations Centre of Agribank