Envoy International Foreign Exchange Services

Foreign Exchange Forward Contracts enable you to buy or sell foreign currency at a future date at an agreed-upon rate. This eliminates the uncertainty of fluctuating currency values. It is helpful for importers, exporters and companies with affiliates in foreign countries.

By "locking in" the value of foreign payables and receivables prior to actual payment or receipt, you eliminate the impact of unfavorable exchange rate fluctuations.

By providing your customers pricing in their currency, you can be more competitive. Your sales and profits are related to your product and service benefits, not fluctuations of the currency exchange markets.

Since Forward Contracts fix payables or receivables, your rate of return is predictable over the course of an agreement to import or export.

This is also critical to balance sheet valuations of a foreign company that you may be buying or selling or operating as an affiliate. From the date an arrangement or agreement is made, any fluctuation in the exchange rate will change the valuation of a company. Forward Contracts and other foreign currency management strategies help you manage this risk.