Foreign Exchange Hedging
Minimise your FX risks
About Foreign Exchange Hedging
Foreign exchange (FX) rate fluctuations can negatively impact your business. BOQ has a range of products and services that can help mitigate this risk and assist in your FX hedging requirements.
Who could benefit from FX hedging or Foreign Currency Accounts (FCAs)?
- Importers or exporters of goods and services
- Businesses that receive or send funds in foreign currencies
- Businesses that want greater certainty around cash flow planning and budgeting
Forward Exchange Contracts (FECs)
An FEC is an agreement to buy (or sell) a fixed amount of foreign currency at a fixed exchange rate on an agreed future date. The date is usually chosen to align with a scheduled payment you expect to make or receive.
Establishing an FEC gives you certainty over the amount of Australian dollars that you will pay or receive in return for a fixed amount of foreign currency on that future date.
Unsecured Foreign Exchange
BOQ’s unsecured foreign exchange facility allows your business to transact FEC’s without the need for supporting collateral. Specifically for small to medium business, it is designed for simplicity and ease of establishment and unlike non-bank financial institutions, BOQ does not require an initial deposit or ongoing margin commitments.
Foreign Currency Options
BOQ offers Foreign Currency Options to approved customers in all major currencies. A Foreign Currency Option enables you to protect your business from adverse exchange rate fluctuations whilst allowing you to take advantage of any favourable movements.
Important information
For important information on Foreign Currency Accounts and Deposits, view our Terms and Conditions.
Want to know more?
Our business banking specialists are happy to help.
Enquire now
- Enquire online now
- Call us on
1800 34 3939
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