Currency forwards

Protection against transactions made in different currencies

You love that your company operates abroad, but that forces you to work with different currencies and the exchange rate can sometimes affect your figures.

Have you considered how you can reduce the impact of currency fluctuations on your company's income statement?

We support you in your international venture, offering you digital solutions and specialised teams to help you control the financial risks associated with your international receipts/payments in a currency other than the Euro.

Controlling exchange rate fluctuations in your foreign trade dealings has never been easier because:

Options and types of coverage

• Currency forwards and American style currency forwards

To minimise the risk derived from the exchange rate, we guarantee single FX price at a certain date. In this way, you have a fixed price at maturity, regardless of market’s movements. This makes managing currencies other than euros easier, as you know the costs or revenue from your transaction or investment right from the beginning and you can forget about doing calculations.

• Choose currency forwards if you want to have a fixed trade price at maturity so that the change in the currency price does not affect you. This can be used before maturity by modifying the initial contracted price.
• Choose the American-style currency forward if you are interested in setting an exchange rate for the sale during a certain period, from the start date you need and until the maturity of the operation, so that you can always use the same price during that period.

• Currency forwards with settlement

In the case of currency forwards with settlement, we continue to offer you a single price at maturity for a period of time, but we set a barrier, in such a way that you benefit from all the positive movements of the market until you reach that barrier. Therefore, if the market price is set above the level of the determined barrier, you lose nothing.

The barrier can be:

• European: observed only on the maturity date.
• American: observed continuously throughout the life of the operation.

• Non delivery forward (NDF)

With an NDF, you eliminate the exchange rate risk of non-deliverable currencies, in other words, there is no physical delivery of currencies as they are only used within the country to which they belong, such as the Chilean peso, and are settled based on the exchange rate differences.

On the maturity date, we look at the difference between the contracted price and that set by the Central Bank of the corresponding country and you get a positive or negative settlement on the account, which will be offset by the price of the physical exchange of the currency in the given country.

List of deliverable and non-deliverable currencies

How can it be opened?

The conditions of this product are personalised for each customer. You can find out more about them through electronic banking, at your Santander branch or from the specialists at the International Business Centre.

You can request this product at any of the Santander branch offices with the support of an international business manager, via Online Banking or by contacting the Comex Specialist Centre on 91 600 99 00.

Operations subject to prior approval by the Bank.