Conversion banking operations for industrial enterprises. Conversion operations

In order to reveal the essence and content of the concept "Conversion operations", it is necessary to define the main, key Terminams This topic.

Foreign currency includes:

monetary signs in the form of banknotes, treasury tickets, coins that are in circulation and being a legitimate payment facility in the relevant foreign state or group of states, as well as seized or deposited, but to be exchanged monetary signs
funds in accounts in monetary units of foreign countries and international monetary or settlement units

Currency values \u200b\u200binclude:

foreign currency
securities in foreign currency Payment documents (checks, notes, letters of credit, etc.), stock values \u200b\u200b(promotions, bonds) and other debenturesexpressed in foreign currency
precious metals Gold, silver, platinum and platinum group metals (palladium, iridium, radium, ruthenium and osmium) in any form and condition, with the exception of jewelry and other household products, as well as scrap of such products
natural precious stones: diamonds, rubies, emeralds, sapphires and Alexandrites in cheese and processed form, as well as pearls, with the exception of jewelry and other household products from these stones and scrap of such products

The procedure and conditions for classifying products from precious metals and natural precious stones for jewelry and other household products and lomas are established by the Government of the Republic of Belarus.

The currency of the Republic of Belarus includes:

in circulation, as well as seized or withdrawn from circulation, but to be exchanged rubles in the form of banking tickets (banknotes) National Bank The Republic of Belarus
funds in rubles in bank accounts and other credit institutions in the Republic of Belarus
funds in rubles on accounts in banks and other credit institutions outside the Republic of Belarus
securities in the currency of the Republic of Belarus Payment documents (checks, notes, letters of credit, etc.), stock values \u200b\u200b(stocks, bonds) and other debt obligations expressed in rubles

To determine the subjects engaged in operations with national and foreign currency, it is necessary to define the most important basic concepts of the system. currency regulation - Resident and non-resident. Concept "resident" Includes the following categories of citizens and organizations:

persons with permanent residence in the Republic of Belarus, including those temporarily located outside the Republic of Belarus
legal entities created in accordance with the legislation of the Republic of Belarus, with the location in the Republic of Belarus
enterprises and organizations that are not legal entitiesCreated in accordance with the legislation of the Republic of Belarus, with the location in the Republic of Belarus
diplomatic and other official representations of the Republic of Belarus, which are outside the Republic of Belarus
branches and representative offices of residents outside the Republic of Belarus

Non-residents include:

individuals with permanent residence outside the Republic of Belarus, including those temporarily located in the Republic of Belarus
legal persons created in accordance with the legislation of foreign states, with the location of the Republic of Belarus
enterprises and organizations that are not legal entities created in accordance with the legislation of foreign states, with the location of the Republic of Belarus
in the Republic of Belarus foreign diplomatic, and other official representations as well as international organizations, their branches and representative offices
branches and representative office of non-residents in the Republic of Belarus

Under foreign exchange operations should be understood:

operations related to the transfer of property rights and other rights to currency values, including operations related to the use of payments foreign currency and payment documents in foreign currency
import and shipment to the Republic of Belarus, as well as export and shipment from the Republic of Belarus currency values
implementation of international money transfers

Legal persons quantities can purchase foreign currency on the internal currency market Only for the implementation of calculations with non-residents. Buying resident legal entities for calculations with residents is prohibited, with the exception of cases of settlements with authorized banks related to the repayment of loans received

Foreign currency acquired by resident legal entities in the domestic currency market should be translated by a non-resident through authorized banks in accordance with the terms of contracts, contracts and agreements between them.

Classification of banking currency transactions It can be carried out both by criteria, common to all banking operations (passive, active operations) and for special features characteristic of foreign exchange operations.

Currency banking transactions include the following: attraction currency deposits, issuance of foreign currency loans, opening and maintaining accounts of residents and non-residents in foreign currency, as well as non-resident accounts in rubles, implementation international settlements, buying and selling foreign currency and valuable papers in foreign currency, etc. At the same time, many bank operations In foreign currency are carried out similarly to the same operations in rubles.

Currency operations implies conversion operations. Under conversion operations understand the operations of banks related to the conversion, i.e. With the exchange of one currency to another. As a rule, this exchange is carried out by concluding a foreign currency purchase and sale transactions (both in cash and non-cash). Supply of funds (Currency Date) for these transactions can be carried out immediately (no later than the second working banking day from the date of conclusion of the transaction) or after a certain period (more than two workers banking days From the date of conclusion of the transaction). Based on the terms of supply of funds, highlights spread (cash, cash) and urgent (forward) currency transactions.

The date of conclusion of the transaction (the date of the transaction) is the date of reaching the parties to the agreement on all its essential conditions (The name of exchanged currencies, exchange rate, the amount of exchanged funds, the date of currency, payment instruments) and all other conditions relative to which an agreement should be reached on the application of one of the parties.

The date of currency is the specified parties to the date of the delivery of funds to the counterparty accounts by the transaction.

Entitled "Spot currency transactions" The three types of transactions on the purchase and sale of foreign currency, providing for the supply of funds on them:

under a transaction type Tod (from the English word today - today) means a conversion operation from the date of the currency on the day of the transaction, and the course recorded in them is called the Course
transaction type Tom (from the English word Tomorrow - tomorrow) is an operation with the date of the currency for the next conclusion day, the working banking day, fixed in them the course is called the course
transaction type "Spot" (from the English word Spot - cash) is a conversion operation with the date of the currency on the second day of the conclusion of the transaction, the working banking day, fixed in them the course is called a spot or spot course

Urgent currency transactions Banks are carried out on the basis of urgent transactions. The urgent (forward) transaction (Forward outright) is a conversion operation, the value of the currency on which is the date of the transaction to the transaction more than two working banking days, such operations include forwards, settlement forwards, futures, options and swap transactions.

Operation "Forward" It is a contract that is currently time to buy one currency in exchange for another reasonable course, with the transaction on a certain day in the future. In turn, the Forward operation is divided into:

transactions with "outrait", i.e. with the condition of delivery of the currency for a specific date
transactions with "option", i.e. With the condition of the non-fixed date of delivery of the currency

In most cases, forward contracts are concluded for the purpose of insurance against currency risk associated with an unfavorable change in the rate of the basic currency in the future. At the same time, the seller, under the contract being, as a rule, the owner of the basic currency, is insured against the fall of its course, and the buyer interested in obtaining a real currency is from its growth. However, the forward contract can be used for speculative purposes when the goal of the game on the change in exchange rates in time is prosecuted.

Urgent stock operations (type futures, option, swap and so on.), Following urgent transactions, are not conversion operations.

Conversion operations are an essential element when conclusted transactions, they are conducted in foreign currency. This species Operations are in demand by enterprises carrying out foreign economic activity (VED) and contracts with non-resident contracts for which obligations in foreign currency must be executed.

Directly conversion operations are exchanged transactions specific sums The currencies of one country for the currency of another followed by the calculation of the transaction using the currency received at a specific date. As a rule, conversion operations are carried out by banks that become intermediaries between the companies leading the VED, and their foreign partners. It is worth understanding that the conversion operation is not at all exchange of the currency that we used to see in the kiosks. This is a special kind financial operations, whose essence is not so much in the exchange itself, how long will the use of the currency that appeared as a result of the exchange in the client's account.

Conversion operations in international practice

Interesting Fact: In international practice, conversion operations are called Foreign Exchange Operations, or abbreviated Forex. And this is not an accidental coincidence: Indeed, today, the World Forex market, known for its speculative operations, initially served precisely conversion goals. This is best reflecting the essence of these operations: counterparties from different countriesWith accounts in different currency, you need to quickly carry out a deal, for which they should exchange money in the foreign exchange market in order to bring them to a common denominator.

The definition of conversion operations it was not accidentally indicated that the wiring was made on a specific date. The delivery time of money to the account, or, as it is called in a professional financial environment, the value of the currency is the most important element of the conversion operation, since it depends on the date of the currency when specifically money in the desired currency will come to the desired account.

Depending on the date of currency, conversion operations can be:

spread, that is, instant or current. Executed at the current rate, relevant at the time of the transaction;

forward, or urgent. We are held on the forward course, with a deferred values \u200b\u200bdate. To date, it is widely used for speculation, since the most common forward conversion operation is a currency swap, that is, a combination of two multidirectional operations divided into time in one operation. For example, it may be to buy a dollar for euros with a deferred dollar selling and receiving euros.

In international practice, the Condition Conditions "Spot" imply a values \u200b\u200bdate on the second banking day after the transaction. This is done so that market participants can prepare everything after concluding a contract. required documents For the transaction. In Russia and countries former USSR This practice did not take place and conversion operations are carried out otherwise.

Conversion operations in Russian: What are the banks of Russia offer?

The practice of currency wiring in Russia is due to the time difference with the United States, as well as the traditional love of domestic bankers to the cash register of the posting. Today banks of Russia offer conversion transactions According to the dollar currency pair / ruble and euro / ruble with currency in the current banking day -TOD or the next banking day - TOM. SPOT conditions are not offered.

Wiring with the date of the currency "Today" on the currency pair of the dollar / ruble and the euro / ruble are carried out throughout the working day, since most Russian banks take payment orders to 18:00, and sometimes until 21:00 Moscow time. The eight-hour time difference with the United States allows Russian wiring to slip into the window before opening a banking day in America. Accordingly, at the time of the start of postings in the United States, all Russian conversion operations are already waiting for processing.

It is worth noting that banks make wiring in their inner, course, and not according to the current market spot rate, as is customary in international practice. Because of this, some deviations are possible in the resulting amounts. Different banks have different rules for the implementation of conversion operations. Most often a course on the main currency pairs Exhibited once a day, on the basis of the course closing of the spot market of the previous days. In some advanced banks (which is not so often found) throughout the working day, adjustments may be made. Some banks offer for large customers special conditions of service, including preferential currency exchange rates.

Forward conversion operations are carried out - both one-sided and subsequent reverse operation (swap). As a rule, banks offer conducting forward transactions only with the help of transactions by phone, and not information systems Or software products "Client-Bank" to simplify the passage of operation. This is due to the fact that such operations are incurred by additional risk to banks, so before the conclusion of such transactions, the client must either receive a special surmise risk at the Bank for urgent operations, or make warranty support for the transaction.

What specific conversion operations are found in practice?

The most common operations that are carrying out banks of Russia are:

buying foreign currency for customer funds placed on a ruble account, followed by currency enrollment on the specified currency account;

purchase national currency for customer funds posted on currency account, with the subsequent enrollment of rubles on the specified currency account;

conduct sale of sale at the expense of funds in one currency, followed by crediting the amount to the account in another currency.

It is worth noting that for conversion operations, the spectrum of the proposed currencies is much wider. If in cash, you can only get the most popular currency in the world (dollar, euro, pound), then for conversions you can actually use all freely traded on the world over-the-counter foreign exchange market (those traded as the tools in the Forex market), as well as some conditionally -Forced (not prohibited by the governments of these countries for sale).

The participants of the foreign exchange market have the right to carry out transactions called conversion operations. What does a similar concept mean? What types of such transactions exist? What order are held on client accounts? We'll figure it out in legislative nuances.

such foreign currency transactions that are made by the Bank in the interests and with the consent of the Client and are to exchange (conversion) of the currency. Simply put, it is a transaction to implement or buy one currency in exchange for another. Meet the mandatory coordination of the amount of funds to be distributed, the date of the transaction and course. Actual execution Transactions can be performed immediately or through a specified period of time.

As it is clear from the name, the main objects (subject) of conversion transactions are the currency of various countries or territories, and the main participants - the Central Bank, the exchange, brokers, the state, the client and the executive bank. In order to exchange funds on customer accounts, money accumulates. Performance of the transaction is possible in any of the current currencies at a predetermined course and at a given date.

Conversion operations on customer accounts - types of 181-and

At the level banking legislation Types of such operations are regulated by the Bank of the Russian Federation in Instructions No. 181-and dated 08/16/17 Latest edition 29.11.17 adopted in accordance with Appendix 1 of the specified regulatory document The following types of conversion non-cash transactions are allocated:

010 - For Sale Involyut Resident for Russian Currency.
030 - Purchase is renovated by a resident for the Russian currency.
040 - Sale or purchase by a resident of one foreignly for another.
010 - Purchase of the Russian currency with a non-resident for a root.
020 - Sale of Russian currency with a non-resident for a root.

Additionally, conversion transactions are grouped by urgency:

Current types of spot - usually execution occurs instantly. At the same time, the current course is used, relevant at a given moment.
Urgent forward - execution occurs on a postponed date. Course - forward.

Note! As a rule, conversion transactions are made instantly, that is, with the delivery of the currency no later than the 2nd working day of the punishment bank. Such operations are called Spot. But in some cases, the transaction can be framed in advance, and the value of the currency is postponed indefinitely. These are all transactions type forward.

Conducting conversion operations on customer accounts

Often, conversion transactions are carried out not for the sake of obtaining income from fluctuating the exchange rate, and in order to execute the conditions of the foreign trade contract. At the same time, the company can have an open ruble in the bank, or vice versa, a currency account. And to list needed species Funds under the contract, the conversion of funds followed by payment.

The accurate procedure for the exchange may vary depending on the rules adopted by the executor of the operation. In the current legislation of clear regulations for conversion transactions does not exist. To obtain the possibility of executing conversion transactions, the client must write a statement. Challengement of the Commission takes place on the rates of the RKO banking institution. All Basic Exchange Conditions - Currency Date, Course, Guarantee Provision of forward type and others also better clarify in advance so as not to get an unpleasant surprise subsequently.

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Conversion operations represent the transactions of buying and selling cash and non-cash foreign currency (including currency with limited conversion) against cash and non-cash rubles Russian Federation.

The bulk of the transaction operations with immediate delivery. The feature of these transactions is that the date of conclusion of the transaction almost coincides with the date of its execution

Transactions with immediate delivery are three species:

Under a type of type "Today" It is understood by the conversion operation at which the date of the currency coincides with the day of conclusion of the transaction.

Type deal "Tomorrow" It is an operation with a valid date for the next conclusion day working banking day.

Under a type of type "Spot" It is understood by the conversion operation with the date of the currency on the second day of the conclusion of the transaction, the working banking day.

Urgent forfhar deal (Forward Outriqht) is a conversion operation, the value of the currency on which is from the date of conclusion of the transaction more than two working banking days. Urgent stock operations (type futures, option, swap and so on.) Are not a conversion operation.

Transaction swap (swap) - This is a bank transaction, consisting of two opposing conversion operations to the same amount concluded on the same day. At the same time, one of these transactions is an urgent, and the second is a transaction with immediate delivery.

Currency position of the bank.

Conversion operations cannot be carried out without taking into account the risks of currency positions of the bank.

Currency position - The remains of funds in foreign currencies that form assets and liabilities (taking into account the off-balance sheet requirements and obligations under incomplete operations) in the relevant currencies and create a risk of obtaining additional income or expenses when changing exchange rates of currencies.

Open currency position - the difference of remnants of funds in foreign currencies, which form quantitatively not coinciding assets and liabilities, reflecting the requirements of obtaining and obligations to put funds in these currencies as completed by the calculations in the present (i.e. on reporting date) and expiring in the future (i.e. after the reporting date).

Short open currency position - Open currency position in a separate foreign currency, liabilities and off-balance sheet liabilities in which quantitatively exceed assets and off-balance sheet requirements in this foreign currency.

Long open currency position - Open currency position in a separate foreign currency, assets and off-balance sheet requirements in which quantitatively exceed liabilities and off-balance sheet liabilities in this foreign currency.

Closed currency position - a currency position in a separate foreign currency, assets and liabilities (taking into account the off-balance sheet requirements and obligations under incomplete operations) in which quantitatively coincide.

Operations affecting the change in the currency position should be attributed:

Accrual of interest and receipt of operating income in foreign currencies;

Accrual of interest and payment of operating expenses, as well as purchase costs own funds in foreign currencies;

Conversion operations with immediate delivery of funds (no later than the second working banking day from the date of the transaction) and the supply of them for a term (over two working banking days from the date of the transaction), including transactions with foreign currency;

Urgent operations (forward and futures transactions, swap transactions, etc.), for which the requirements and obligations in foreign currency are arising regardless of the method and form of settlements on such transactions;

Other operations in foreign currency and transactions with other currency values, except for precious metals, including derivative financial instruments of the foreign exchange market (including exchange), if, under the conditions of these transactions, in one form or another, the exchange (conversion) of foreign currencies or other currency values \u200b\u200bis envisaged except precious metals.

Currency position arises at the date of concluding a transaction for the purchase or sale of foreign currency and other currency values, as well as the date of interest income (expenses) and crediting to the account (write off from the account) of other income (expenses) in foreign currency. These dates also determine the reflection date in the reporting of the corresponding changes in the magnitude of the open currency position.

The authorized bank receives the right to open a currency position from the date of receipt of them from the Central Bank of the Russian Federation licenses for conducting operations in foreign currency and loses such a right from the date of its revocation by the Bank of Russia.

Control over the open currency positions of authorized banks of the Russian Federation is carried out as part of the oversight of the activities of credit institutions. When rough violations The Central Bank of the Russian Federation takes measures until the license is reviewed by the right to perform operations with foreign currency.

However, the Bank leads not only an open monetary position for the purchase and sale of the currency. A total currency position on the "NOSTRO" accounts is also conducted daily. As a rule, payments are put onposition per day or two days before their execution, which makes it possible to know the idea of \u200b\u200bthe status of settlements at a specific date on a specific Correspondent account "Nostro". If the amounts of payments exceed the amount of income, the transfer of funds from one account to another is issued. Daily, the Bank checks the compliance of payments made to a position with the amount of payments that have been published from the Nostro account, which the Bank receives from its foreign partner. Thus, the positioning of the position for each particular day begins with the analysis of the balance on the "Nostro" account by Inobanka for the previous day. Such control is essential to avoid the occurrence of debit balance and interest payments for overdraft.

Transaction "Spot" - This is an operation carried out according to the course consistent today, when one currency is used to purchase another currency with a deadline for the final settlement on the second working day, not counting the day of conclusion of the transaction.

Operation "Forward" (Urgent transactions) is a contract that is currently the time to buy one currency in exchange for another reasonable course, with the transaction on a certain day in the future. In turn, the Forward operation is divided into:

transactions with "Outraight" - with the condition of delivery of the currency for a specific date;

transactions with "option" - with the condition of the non-fixed date of delivery of the currency.

Transactions Swap represent currency transactions that combine the purchase or sale of currency on the conditions of the Cash transaction "Spot" with simultaneous sale or purchase of the same currency for the term at the rate "Forward". Transactions "Swap" include several varieties:

Transaction "Report" - sale of foreign currency on the terms of "spot" with its simultaneous purchase on the terms "forward";

Transaction "Derepet" - Purchase foreign currency on the terms of "spot" and simultaneous sale on the terms "Forward". Currently, the purchase and sale of contracts under Forward, as well as the purchase and sale of futures contracts.

Currency arbitration - The implementation of operations for the purchase of foreign currency with simultaneous sale of it in order to obtain profits from the difference between exchange rates. The emergence of the difference in exchange rates in the markets of different countries - the essence The concepts of spatial arbitration. It is a variety of currency arbitration. With the development of computer and modern means of communication, an increase in the amount of operations differences in courses in different markets began to occur very rarely, so spatial arbitration has lost its value.

Next variety of currency arbitration - Temporary arbitration. Its essence in changing the exchange rate in time. Prerequisite It is free reversibility of currencies. The prerequisite is the mismatch of courses. As a result of the distribution of a system of floating exchange rates, the role of temporary arbitration has increased. The difference between the temporary arbitration from the usual currency speculation is that during the arbitration, the dealer changes its tactics over one day and makes a bet mainly on the short-term nature of the operation. Currency operation Directed for a long-term maintenance of a long position in the currency, the course of which is growing, or a short position in the currency, the course of which tends to reduce.

There are also distinguished conversion currency arbitration, Supporting currency purchase is the cheapest, using both the most favorable market and change the courses in time. With conversion arbitration, several currencies exchange occurs.

Conversion is called purchase and sale operations (exchange, conversion) specified amounts of currency of one country for the currency of another country or international monetary unit According to the agreed rate for a specific date.
Conversion operations are called "Forex" (Forex or FX - reducing Foreign Exchange Operations). Interbank conversion operations prevail in the global foreign exchange market.
Conversion operations commercial Bank We are divided into client and arbitration. The first is carried out by the Bank on behalf of and at the expense of clients (enterprises, the population), the second (currency arbitration) are carried out by the bank at their own expense in order to profit due to the difference of exchange rates. Currency arbitration can be defined as a purchase (sale) currency, followed by the commission of a counter-show (reverse transaction) to obtain a course profit.
Distinguish currency arbitration spatial and temporary. The first is used to profit. There is an account of the difference in courses in different foreign exchange markets. The arbitrator buys (sells) currency, for example, in Singapore and almost simultaneously through its correspondent sells (buys) this currency, i.e., makes a counterfeit (inverse transaction), in London. The spatial arbitrage is not associated with the currency risk (a risk of a loss from the course changes), as the purchase and sale of the currency are manufactured simultaneously. With modern means of communication and telecommunications, spatial arbitrage in world markets has lost their former importance, since the simultaneous activity of dozens of dealers from a variety of banks in various countries leads to the alignment of the interbank exchange rate.
With temporary arbitration course profit It is formed by changing the course for a certain time, so such arbitration is associated with currency risk.
A variety of currency arbitration is the percentage arbitration, in which the profit occurs due to the difference interest rates and exchange rates. If, for example, the interest rate on deposits in the euro increased compared with the pound of sterling, the English speculator will exchange

Page --- 241 - thundes on the euro, invests the euro in a deposit under more high percent And after the expiration of the deposit, the euro for pounds. Such arbitration is called "uncovered", it is associated with the currency risk of reducing the euro course to Pound. For insurance of currency risk, the coating arbitration is carried out - simultaneously with the investment in the deposit, the investor sells euro for the term of the deposit (the amount equal to the contribution to the euro, plus interest on the contribution) at a fixed rate for pounds.
To essential conditions for any operation (transaction) include the date of its conclusion and the execution date (permanent date).
The date of conclusion of the transaction (the date of the transaction) is the date of the parties to the Parties of the Agreement on all its essential conditions. Date of currency for conversion operations is the date of delivery of funds to the counterparty for the transaction. Dates of the currency are only working days. In the case of the bank of the transaction and / or settlement of the transaction in the established federal law day off or holiday day, as well as on day off, transferred to the working day by the decision of the Russian government, the perfect transaction and / or transaction calculations are held on accounts accounting The first working day, following the data non-working day. "
Depending on the date of the currency, the conversion operations are divided into two groups: cash (cash), or current, and urgent.
The Bank of Russia defines the cash (cash) making as a transaction, the execution of which is carried out no later than the second working day after its conclusion. These transactions include transactions by calculations (date of the currency) "Today" (Today, or the transaction "on Tod"); The calculations "Tomorrow" (Tomorrow, or the transaction "on the volume") and the transaction of SPOT, or "on space".
The date of currency of transactions "on the TOD" coincides with the day of the transaction, and the transactions "on the volume" comes to the next day of conclusion of the transaction. The execution of SPOT transactions is carried out on the second working day after their conclusion (for example, if the spot deal is enclosed on Monday, then the day of its execution will be the environment, and if the transaction concluded on Thursday, then the date of the currency will be Monday; Saturday and Sunday - non-working days).

Spot deal is the most common current transaction in world practice. Translated from English Spot means "Cash, available". Therefore, the terms "Cash", "cash register" are used to designate current currency dealsAlthough most of them (as well as all foreign exchange transactions) are carried out non-cash path. The market of current conversion operations is called spot market (Spot Market).
The current conversion operations also include transactions of banks for the purchase and sale of cash foreign currency individuals (both residents and non-residents).
The urgent transaction is determined by the Bank of Russia as a transaction, the execution of which is carried out by the parties not earlier than the third working day after its conclusion. Urgent transactions have two features. First, the time interval between the moment of concluding and the moment of execution of the transaction is greater than on the current transaction. The urgent transaction is based on the contract of sale of foreign currency with delivery within a certain period or for a certain period in the future. From here - the second feature is a exchange rate, recorded at the time of the conclusion of the transaction, can significantly deviate from the course on the currency market at the time of its execution (current course). Upon the occurrence of the term, the currency is bought or sold at the rate recorded in the contract of sale.
Urgent includes forward, optional, futures transactions.
Forward Operations, or FWDs - the most widely used type of urgent transaction. Used for insurance currency risks Or for the purpose of currency speculation. The exporter may insure against a decrease in the foreign currency exchange rate, to retail the future monetary revenue for the term of the forward course. The importer may insure against increasing the course of foreign currency by purchasing a currency for a period in a bank.
Currency speculators playing down the course ("bears") - sell currency for a period, calculating that by the time the transaction is executed, the exchange rate on the market will be lower than the forward rate. If the expectations of "bears" are justified, they will buy a currency at the lower current course and sell it at a higher rate of Forward, receiving profit in the form of Kur-
owl difference. Speculators playing raising a course ("bulls"), waiting for an increase in the currency exchange rate, buy it for a term at the rate of Forward so that when the term of the transaction has received a currency from the seller, recorded at the time of conclusion of the transaction (forward rate), and Sell \u200b\u200bher on the market at a higher current course, receiving a course profit.
Usually forward transactions are concluded for a period of 1 week to 12 months, and for standard periods 1, 2, 3, 6, 9, 12 months. (Direct dates of the currency - Strait Dates). The value of the currency is determined by "from sideways". If, for example, a three-month forward contract was concluded on January 27, 2003, the date of the currency will be on April 29, 2003 (January 27, 2003 + 3 months). When the date of Spot falls on the last day of the month, the "Rule of the last date of the month" operates (End of Monh Rule). So, if the forward transaction was concluded on February 26, 2003 with the date of SPOT on February 28, then the date of the currency will be on the last day of March, i.e. on March 31, and not by 28.
If the term of the forward contract is from one day to one month, the contract is considered concluded for short dates (Short Dates). If the dates of the currency do not coincide with the standard terms, the periods of transactions are called broken dates (Broken Dates).
Most often, forward transactions are completed by supplying foreign currency. But the forward contract can be executed and without delivery of the currency - by conducting a counterfeit (counter transaction) at the date of execution of a forward contract for the current currency rate. Forward contract without supplying a basic asset is called a settlement forward.
For example, the Bank concluded a one-month forward transaction for sale $ 1,000 at the rate of 31.90 rubles in January 2003. per dollar. In February, he must put $ 1000 in exchange for 31900 rubles. In the case of a settlement forward, the Bank instead of delivering dollars will make a counter-deal, i.e. buy $ 1000 for rubles at the current course. If in February 2003 the current course was 31.70 rubles., The bank bought $ 1000 for 31700 rubles, which, therefore, the result of the settlement striker was the payment of 200 rubles in February of its counterpart. (31900 -31700).

Page --- 244 - Course on a forward transaction, as a rule, differs from the course on Spot deal. Forward course is set by a premium or discount.
The premium means that the forward course is higher, and the discount is lower than the spot course. The difference in Melsels courses spot and forward are called the forward difference, forward points or swap differences, swap points (Swap Points, Swap Rate). This is explained by the fact that the difference in courses of two transactions of the standard transaction swap is determined in forward points.
The difference between the spot course and forward course reflects primarily the difference in interest rates for the corresponding period according to exchange currencies. Forward premiums and discounts allow you to level the difference in interest rates. A low interest rate currency is quoted in the forward market with a premium with respect to currency with more high bid.. Currency at a higher percentage rate is quoted at a discount. Therefore, in the foreign exchange market, the advantage of a higher interest rate for any currency has a tendency to be compensated by a decrease in the course of this currency on the forward market compared to the spot course.
The situation when the forward premium (discount) as a percentage of the spot corresponds to the difference in interest rates is called a parity of interest rates. Approximate swap difference in parity interest rates is determined by the formula