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FrançaisForward 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 payments in a foreign currency at a future time to protect themselves from fluctuations in the rate of exchange. In contrast to currency future, forward exchange contracts are for variable amounts and time periods and are transacted through banks and exchange houses.
