Forward Contract

A forward contract lets importers, exporters and borrowers in foreign currency remove uncertainty about future exchange rates. An importer who must pay dollars in three months can book a forward purchase now; an exporter expecting dollars can book a forward sale.

The forward rate differs from the spot rate by the forward premium or discount, which mainly reflects the interest rate difference between the two currencies (interest rate parity). The currency with the higher interest rate generally trades at a forward discount.

Forwards are customised over-the-counter contracts between a bank and its customer, so the amount and date can match the underlying transaction. They are binding: if the customer cannot deliver or take delivery, the bank cancels the contract and the customer bears any loss from rate movements.

Forwards differ from futures, which are standardised, exchange-traded and marked to market daily, and from options, which give a right but not an obligation.

In Nepal, licensed banks may provide forward cover to customers for genuine underlying transactions within NRB's foreign exchange directives. Because the rupee is pegged to the Indian rupee, hedging needs relate mainly to other currencies such as the US dollar.

फरवार्ड सम्झौताले आयातकर्ता, निर्यातकर्ता र विदेशी मुद्रामा ऋण लिनेको भविष्यको विनिमय दरको अनिश्चितता हटाउँछ। तीन महिनापछि डलर तिर्नुपर्ने आयातकर्ताले अहिल्यै फरवार्ड खरिद बुक गर्न सक्छन्।

फरवार्ड दर र स्पट दरबीचको फरक प्रिमियम वा डिस्काउन्ट हो, जुन मुख्यतः दुई मुद्राको ब्याजदर अन्तर (ब्याजदर समता) ले निर्धारण गर्छ।

फरवार्ड बैंक र ग्राहकबीचको अनुकूलित (OTC) सम्झौता हो र बाध्यकारी हुन्छ: ग्राहकले पूरा गर्न नसके दर परिवर्तनको नोक्सानी ग्राहकले बेहोर्छ। फ्युचर्स मानकीकृत र एक्सचेन्जमा कारोबार हुन्छन्; अप्सनले अधिकार दिन्छ, दायित्व होइन। नेपालमा इजाजतप्राप्त बैंकले वास्तविक कारोबारका लागि नेपाल राष्ट्र बैंकको निर्देशनभित्र फरवार्ड सुविधा दिन सक्छन्।