If you know what your needs are in terms of foreign currency, it is to your advantage to choose a forward contract. These transactions are similar to spot transactions in that they’re based on the day’s rate, but settlement may occur on one or more subsequent dates. Since exchange rates fluctuate, it’s impossible to predict whether they will rise or fall, and trying to predict future rates may have unfavourable results.
- Protection against costly exchange rate fluctuations that lets you set your price and ensure that exchange fluctuations will not affect you adversely
- Settlement of the total contract amount in a single payment or instalments spread out over the contract period
You can choose to settle the transaction by debiting your LBC bank account, by electronic bank transfer or using any other settlement method you’ve already set up with one of our International Services representatives.