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International markets and foreign exchange operations - Savluk M.І.

11.2. Percentage Forwards

11.2.1. Take away the forward / forward

The be-yak deposit operation in foreign currency is tied for the bank not less than with foreign currency, but with interest-rate hryvnia. Zvichayno, the simplest option is the acquisition of the same amount of money in the same currency for the same term. However, in practice, you can often splurge in such a way that terminology is not lost. In such hitchhikers, it’s necessary, first of all, to analyze and predict the ability to pay interest rates for Maybutny, and in another way, take the decision about those who use the hedging policy and this very method.

One of the possible forms is to clean the interest rate з forward / forward (forward / forward).

Uyaavimo, scho in the bank vidkrita dovga deposit position for three months and that is short in the current currency for three months. Thus, for the first three months the position is closed, and for the next three months the bank has a short deposit position. Quite simply, a bank can, for a terminated three-month deposit, get one for such a term, if only interest rates are too small, then the bank can rely on a small company.

Forward / forward I can help the bank please pay for the deposit operation in Maybutny in the currency of the singer, for the term of the term and for the fixed interest rate.

Please take the forward / forward forward to hedge for hedge and for speculation.

The basis of the financial instrument is the forward / forward rate. It’s not є the forecast rate of the Maybuty period, but less than the interest rates on the market at the date of the occupation. It’s not at all, such as a three-month deposit rate after three months, a year-on-year interest rate of three, and a six-month deposit, at the same base and the rate for May interest is forward.

Nekhay dovgy period of the loan is T (Fig. 11.1), and the rate of interest for all periods is RT , the short period of time is t , the interest rate is rt , and the rate must be reimbursed, such as the interest rate RT-t for period T - t .

forward rate

Fig. 11.1

bid rate

for razrahunku forward rates

deposit in dollars

Zauvazhennya: for razrahunka rates forward / forward for the price formula, the interest rate should be taken in absolute terms, and not in the indispensable value (the interest rate is renewed per 100).

Butt. The interest rate for a three-month deposit in US dollars is 6.15% pa, the interest rate for six months is 6.52% pa The rate for forward / forward deposits is three months, three days after three months (3 v6).

Banks market makers quote forward rates

Banks-market makers quote forward / forward rates for yakuchchennya, so і for rozmіschennya depositіv. For rosrahunka, the value of the bid side bid and offer rates for the forward / forward should be taken vidpovidny interest rates, take the part from the lottery.

Forward / forward rates , as a rule, are quoted for the most liquid currencies - US dollar, British pound sterling, Euro, Swiss franc and Japanese currency, but they can be completely redeemed for currency.

Take away the forward / striker did not score significant widening. We are obligated to do so in the future, with the financial instrument meaning of low indecisiveness. In the first place, the operation of acquiring the number of shifts at the front / forward positions is shown at the balance, and, in another way, the significant spread is less than the maximum for the paid cats, you can significantly increase the interest rate for the interest rate.

The forward / forward rate lies in the basis of interest-bearing futures and stays locked in the new instruments, but it is significantly more extensive - in favor of the forward rates.