Derivatives

HSBC can provide a limit of up to US$6 million and a maximum transaction tenor of 12 months. Foreign exchange credit line is required and major foreign currencies are available. Spot and forward FX transactions are performed for the same amount of the deal and spot and forward rates are quoted for each deal.

Benefits

• Eliminate potential exchange losses resulting from adverse exchange rate movements (however, you cannot take advantage of favourable moves).
• Increase cash flow liquidity.
• Good planning tool as cash flows mismatches are identified up front.