Treasury Solutions


    Forward Contracts

    A forward contract or simply a forward is a non-standardized contract between two parties to buy or to sell an asset at a specified future time at a price agreed upon today, making it a type of derivative instrument.

    Exporters and importers hedge their currency risk at selling and purchase prices by making forward contracts.

    Features of Forward Contracts:

    • Conditions are set between parties by a special contract.
    • Prices are set at a specified future time at a price agreed between parties.
    • An irrevocable undertaking for both parties.
    • Transactions take place Over The Counter Market.

    Advantages of Forward Contracts:

    • Eliminate currency risk as foreign exchange costs (both payables and receivables) are determined upfront.
    • Set up delivery dates to match your cash flows.
    • Set up costing strategies and operational income

    Vanilla Option

    A vanilla option is a financial instrument that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price, within a given time frame. A vanilla option is a normal call or put option that has standardized terms and no special or unusual features.

    Exporters use sell options to eliminate currency risk while importers use buy options.


    You may fix your variable interest payables. You may eliminate currency and interest risk by converting USD payables to EUR or TRL.


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