Forward foreign exchange is a foreign exchange business in which the buyer and the seller sign a contract to stipulate the currency, amount, exchange rate and future delivery time of foreign exchange, and then the seller meets and the buyer pays according to the contract.

Forward foreign exchange business is a foreign exchange business that makes an appointment to buy and sell.

Let's see this time. The so-called selling forward foreign exchange is actually an agreement and a contract. You sell money that you haven't earned yet, and the bank certainly doesn't have to pay. If you are an exporter, if you sell something and get foreign exchange, go to the bank to exchange it with them at the time of delivery according to the agreement with the bank (currency, amount and exchange rate).

Talk about the causes of forward foreign exchange: (for others to browse)

In the case that exporters sell goods by short-term credit and importers buy goods by deferred payment, there are certain foreign exchange risks for them from transaction to settlement. Due to the fluctuation or change of exchange rate, the exporter's local currency income may be lower than expected, and the importer's local currency payment may be higher than expected.

In order to reduce the risk of foreign exchange, exporters with forward foreign exchange income can conclude a contract with banks to sell forward foreign exchange, and after a certain period of time, sell their foreign exchange income to banks at the price stipulated at the time of signing, so as to prevent the exchange rate from falling and suffering economic losses; Importers with forward foreign exchange charges can also sign forward foreign exchange contracts with banks, and after a certain period of time, they can buy from banks at the price stipulated at the time of signing, so as to prevent the exchange rate from rising and increase the cost burden. In addition, due to the existence of forward foreign exchange transactions, it is also convenient for exporters and importers with forward foreign exchange receipts and payments to calculate the costs of their exporters and importers in advance, determine the sales price and calculate profits and losses.