Treasury services

Spot conversion

FX spot transaction is a transaction where two different currencies are exchanged between accounts, where the exchange takes place on the  2nd banking day (T+2 value date)from the trading day.

Client can ask for same day or one day value date FX spot transaction.

Over an amount of EUR 50.000 (or its equivalent in other currency) a special rate can be quoted within business hours:

Monday-Thursday: 9 a.m. – 4  p.m., Friday: 9 a.m. – 2 p.m.)

KDB Bank rates:

  • Cash rates
  • Account conversion rate t-day
  • T+1 foreign exchange rate
  • T+2 foreign exchange rate

Forward rate quotation

Forward is a transaction where two different currencies are exchanged between accounts on the prefixed future value date.

The exchange of currencies takes place on the prefixed accounts, on the same value date. The Client is protected from adverse movements in future FX rates, but he also does not benefit from favourable movements.

Foreign Exchange forwards avoid uncertainty and are therefore valid instruments for Clients to mitigate the foreign exchange risk for future transactions denominated in a foreign currency.

On the trading day of the Forward transaction the Client is obliged to place a collateral deposit at the Bank. If the parties do not agree otherwise, the amount of the deposit is 15% of the forward nominal value.

The minimum size of the transaction is EUR 500.000 or its equivalent in other currency (if the parties do not agree otherwise). (Precondition of the transaction is a valid spot-forward frame agreement.)

Swap transactions

The Bank keeps the possibility, under agreement to quote FX Swap price to the clients. FX Swap is an FX Spot and an FX Forward transaction concluded at the same time. (Precondition of a transaction is a valid spot-forward frame agreement.)

 

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