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FrançaisAn account maintained in a foreign bank in the currency of the country in which the bank is located. When such accounts are kept, they usually represent that portion of the carrying bank´s foreign currency account that is in excess…
Read MoreForeign exchange
Current or liquid claims payable in foreign currency and in a foreign country (bank balances, checks, bills of exchange). Not to be confused with foreign bank notes and coin, which are not included in this definition.
Read MoreForfaiting
The purchase by the forfaiter of an exporter´s accounts receivable which are based on negotiable instruments such as bills of exchange and promisory notes. In contrast to factoring, forfaiting involves a series of independent, medium-to-longer-term obligations of higher value. Since…
Read MoreForward exchange contract
A contract for the delivery of a specified amount of a named currency at a specified future date in return for a specified amount of another named currency. Forward exchange contracts enable importers and exporters who will make and receive…
Read MoreForward exchange option
A contractually agreed right to buy (put) or to sell (call) a specific amount of one currency for a specified amount of another predetermined future date (European option) or up to a predetermined future date (American option). Like forward exchange…
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