Foreign Exhange Risk

Are you involved in importing, or exporting? Do you have investments or liabilities abroad? If so, you are likely to be involved in some form of foreign exchange risk. Our dedicated Corporate and Investment Markets Team (also known as our Treasury Team) can help you minimise these risks and make sure your money works harder for you. We are here to advise you on all the foreign exchange risks you may encounter. To help you decide which risks to take, and which to protect against, we need to truly understand your business. Here are some of the ways we can help you with foreign exchange.

• Spot Contracts - A binding contract to buy or sell a specific amount of currency at the current market rate for settlement in two days time.
  
• Forward Contracts - A binding obligation to buy or sell a specific amount of currency at a predetermined rate on a specific date in the future.
  
• Currency Options - This gives you the right, but not the obligation to buy or sell a specific amount of currency on a predetermined date in the future.

Interest Risk

Are you concerned about interest rate movements? If you are borrowing money you may be concerned about rising rates. But if you are investing surplus cash, you may be more concerned about them falling. Whatever your concerns are, we can help you manage your risks appropriately. For example:

• Fixed rate - You can choose to ‘fix’ the interest rate on the amount of money you have borrowed so that you will know exactly how much your interest payments will be.
  
• Interest Rate Swaps - A swap is an agreement to exchange interest rate obligations (from floating to fixed or vice versa) on a principal amount for an agreed period. Thus, you can, if you choose to, lock into a fixed rate of interest on an amount that you can specify, for a period that suits your requirements.
  

Contact Us

At HSBC, we know how important it is to have someone you trust to guide you through the financial solutions available. And because we understand that business is personal, your Relationship Manager will always act as a point of contact, whichever service you need. You can benefit from our global expertise and trained specialists while maintaining the vital local connection.

Contact our Customer Service today on 2380 2380, or call into your local HSBC branch or Commercial Centre to talk to your Relationship Manager.

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HSBC Bank Malta p.l.c. is authorised by the Malta Financial Services Authority to provide investment services under the Investment Services Act 1994 and is an insurance sub-agent of HSBC Life Assurance (Malta) Ltd.