Forward Contracts
Manage future risk by locking in a exchange rate
Forward Contracts let you lock in a rate today for delivery of funds on a future date. Once a rate is secured, your AUD equivalent is fixed for the duration of the contract, thereby protecting your profits from erosion. This highly effective tool for managing currency risk can be used for both payables and receivables.
Ruesch offers an array of market monitoring services that can help you lock in your cost when the market is at a favourable rate for you. When combined with Holding Balances, Forward Contracts can let you buy in larger amounts and reserve those funds to draw on as needed.
Contract terms may be as short as three days or as long as a year. Flexible delivery dates are available so that you can take final delivery of your funds during a 1 to 30-day window or up to a 90-day window for the following six currencies: CAD, CHF, EUR, GBP, JPY, and USD. Extensions can be provided if you need to reschedule the delivery date beyond the original contract.
Forward Contracts only require a minimal deposit upon locking in the exchange rate, so setting up a contract has minimal impact on your cash flow. Additionally, Ruesch offers low minimums so that even small and mid-sized businesses can take advantage of this service.
Short Forwards
Lock in a favourable rate without having to make a deposit
Foreign exchange markets are constantly in fluctuation and will often experience sudden, short-lived spikes. Short Forward Contracts help companies take advantage of market opportunities without requiring them to put down a deposit on the funds. This type of Forward Contract is available for 3-14 days with an optional 30-day flexible window, giving companies up to 44 days to take delivery of their funds and settle their order.
Standing Orders
Get the rate you want without having to keep a constant eye on the market
With a Standing Order, Ruesch monitors the market for you and if the market reaches your desired rate, your order is automatically processed. This enables you to capitalise on favourable exchange rates when you are unable to personally monitor the market and initiate a transaction. Ruesch representatives can assist you in determining a rate that is appropriate for existing market conditions.
Standing Orders can monitor the market 24 hours a day for up to two weeks, after which the Standing Order can be renewed if the market has not reached the specified rate. You can also cancel the Standing Order if it has not already been executed should your currency needs change.
This service is provided free of charge to all Ruesch clients.
