Fixed FX Rate

Currency hedging with minimal effort

In international trade you need to consider how to manage your currency risk. Currency fluctuations can have a direct impact on your bottom line and make planning and budgeting difficult. We can help you protect against that type of risk.

By choosing Fixed FX Rate you get a fixed rate that is automatically applied to all your payments for a period chosen by yourself. This will
  • Minimize currency risk in an easy and efficient manner
  • Improve financial planning and forecasting
  • Still keep your payment process unchanged

Who would benefit from Fixed FX Rate?

If you’re involved in foreign trade - whether it is imports or exports - it makes sense to use your trading partner’s domestic currency whenever possible and do the exchange with Nordea. For example, a Swedish customer pays you in SEK instead of EUR, and Nordea converts them into EUR. It can give you a competitive advantage by:

  • Making things easier for your trading partners
  • Increasing your customer satisfaction
  • Saving costs and offer better prices

However, carrying the currency risk yourself means you should protect against it. 

How does Fixed FX Rate work?

FX Fixed Rate can help you manage currency risk by fixing the euro value of your future payments in foreign currency.

We can offer you a fixed exchange rate for up to two years, without any changes having to be made to your payment processes. For example, if you make payments in USD from a EUR account, we can agree on a fixed rate for all your future outgoing USD payments in the agreed period. Your payments continue to flow through your EUR account exactly as before.

When agreeing on the Fixed FX rate, we agree on the amount, maturity date and exchange rate. Please note that once agreed on, the agreement is binding for both parties. It means that if we agree on a fixed FX rate for 500 000 USD for one year, you must use the whole amount within the year. 

Risks

Fixed FX Rate is a financial derivative and you must be aware of and understand the potential risks. The Fixed FX Rate agreement is binding, regardless of what happens to the market rate and the commercial agreements that you intend to hedge. 

More information you can find in the KID documentOpens new window.

Do you want to know more?

Contact us for advice! Opens new window