The spread is the difference between the market rate and the customer’s transaction rate.

An option period is one that starts when the forward fixed date is agreed upon in a forward booking. An exporter has an option available to adjust its proceeds at the pre-booked rate before the end of the option period.

Increasing the bottom line is the objective of every business thus; banks charge the maximum possible spread in lieu of market volatility, customer relation, the treasury’s target profit and knowledge of financial markets of importers/exporters.

A premium is a charge that’s over and above the prevailing USD/PKR parity.

This premium may change during every transaction (that means numerous times throughout the day) as they are dealt in the interbank market. These premiums are directly associated with the money market interest rates.

Our team is actively monitoring the inter-bank currency market on a minute to minute basis thus, we are able to identify anomalies and suggest the best possible rates for our clients. Being in tune also helps us to forecast currency movements in the medium to long terms.

That relies upon your product costing, risk, market situation/activity, and your trade cycle. We review the dynamic of your business and discuss strategies with you to suggest a perfectly customized solution.

When price of the currency changes dramatically over a brief time period in either direction, it is termed as Volatility.

All strategies related to forwards are tailored according to a business’s treasury history, risk appetite, cash cycle and sometimes the client’s preferred banks.

When two parties come to an agreement to buy or sell something at an agreed price after a fixed number of days, it referred to as a forward booking.

FE discounting is LIBOR based discounting whereas non FE discounting is KIBOR based discounting. The method in which the pricing is evaluated makes a direct impact on the cost of your discounting structure.