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Currency operations (Foreign Exchange FX) blp

Spot currency conversion

Product characteristics

Spot currency conversion is the purchase or sale of a certain amount of one currency for another currency, applying the exchange rate with which the value is set based on the current development of the exchange rate on the foreign exchange rate, i.e. demand and offer in regard to particular currency. It is used for conversion of money, for payment abroad, collection from abroad or conversion of money between the client accounts kept in different currencies.

Term currency conversion (Forward)

Product characteristics

Forward means an agreement (commitment) on future mutual exchange of two currencies with maturity longer than the spot foreign exchange, i.e. at least D+3, while the future exchange rate is set on the date of commitment origination. It serves for hedging the currency risk of future cash flows of the client in foreign currency. Forward is not a standardised product, i.e. volumes and maturities are set according to the individual client requirements.

Currency swap

Product characteristics

Currency swap means purchase/sale of one currency for another currency with concurrent resale/buy-back within the future set deadline for the exchange rate agreed upon in advance. It is a combination of spot and forward trade while the future foreign exchange rate reflects interest expense and interest income of the term period.

More information is available in the dealing manual which can be obtained from our contact persons.

Contact person

Lukáš Žitný   
phone: +421 250 559 650

Milan Štoček  
phone: +420 221 865 124