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faq:multi_currency_currency_forward_process

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faq:multi_currency_currency_forward_process [2008/03/03 10:47]
cliff
faq:multi_currency_currency_forward_process [2008/03/03 10:48] (current)
cliff
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 Currency forwards are also called foreign currency forward contracts. They are basically an agreement that obligates its parties to exchange given quantities of currencies at a specified exchange rate in the future. The rate is normally assigned at the time the contract is agreed to, and usually requires a deposit to be given. ​ Currency forwards are also called foreign currency forward contracts. They are basically an agreement that obligates its parties to exchange given quantities of currencies at a specified exchange rate in the future. The rate is normally assigned at the time the contract is agreed to, and usually requires a deposit to be given. ​
  
-I am going to go through an example process. The date the deposit and contract are initiated will be Jan 1st. The Agreement is to purchase $200,000 on Feb 1st. The advance to the supplier will happen on or after Feb 1st. The local currency will be CAD, and the foreign currency will be USD.+I am going to go through an example process. The date the deposit and contract are initiated will be Jan 1st. The Agreement is to purchase $200,000 on Feb 1st. The advance to the supplier will happen on or after Feb 1st.
  
  
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   * This process uses advances   * This process uses advances
   * There are 2 suppliers: currency forward supplier, and inventory supplier.   * There are 2 suppliers: currency forward supplier, and inventory supplier.
 +  * The local currency is CAD
 +  * The foreign currency is USD
 +
  
   - Create an advance for 5% on Jan 1st. This advance is $10,000 CAD or 5%. The date and currency data are both Jan 1st.   - Create an advance for 5% on Jan 1st. This advance is $10,000 CAD or 5%. The date and currency data are both Jan 1st.
faq/multi_currency_currency_forward_process.txt ยท Last modified: 2008/03/03 10:48 by cliff