• Foreign Exchange & Interest Rate Management

     

  • Getting To Grips With Day To Day Risk

    The nature of your business, its international activities and the cycles specific to your industry affect your exposure to and tolerance of foreign currency and interest rate fluctuations. Silicon Valley Bank offers expert advice and a suite of products to help you to achieve certainty in uncertain times.


    Foreign Currency Exchange

    Spot Contract

    Purchase or sale of a specific amount of a foreign currency at a specified exchange rate immediately with delivery no more than two days later.

    Forward Contract

    Purchase or sale of a specific amount of a foreign currency at a specified exchange rate immediately with a delivery date in the future.

    Non-Deliverable Forward Contract

    Purchase or sale of a specific amount of foreign currency at a specified exchange rate immediately with a delivery date in the future for use when dealing in restricted currencies and no need to hold accounts in local currencies.

    Foreign Exchange Swap

    An agreement to exchange two currencies at a specified exchange rate at a certain time in the future.

    Currency Option

    Purchase the right (the "option"), but not the obligation, to buy or sell currency at a specified exchange rate on a specified future date.

     


    Interest Rate Management

    Swaps

    An agreement to exchange one floating or fixed rate of interest for another floating or fixed rate of interest in relation to a stream of future interest payments. Typically used to fix the rate of interest on a debt obligation.