Flexiterm
For you as an importing or exporting business with uncertain payment deadlines, and an unclear knowledge of the date of advance of your foreign exchange cover.
Crédit Agricole Group’s FLEXITERM guarantees you a unique purchase or sales rate for currencies with the option of collection.
Basic principles
Hedging strategy that functions as a foreign currency package at a guaranteed exchange rate through which the business can draw from at any time from the contract’s starting date until its expiry. This solution will provide you with the same guarantees as foreign exchange forward transactions with, in addition, the possibility of covering a business flow and adapting the use of current foreign currencies on the effective payment dates.
The rate is unique.
You will thus benefit from protection against the offset risk for the swap points.
The minimum sum for a withdrawal is EUR 30,000 in counter-value (USD 30,000 if the contract is for EUR/USD).
Your needs
- Flexiterm was developed for importing or exporting businesses with uncertain payment deadlines, and an unclear knowledge of the date of advance of their foreign exchange cover.
- Flexiterm covers the transactions for an uncapped amount.
- The contract is customisable with a varying duration according to the currency in question, with the possibility of delayed starts.
- The currencies available for use are: EUR, USD, JPY, GBP, CHF, SEK, DKK, NOK, CAD, AUD, NZD for a maximum duration of 5 years. SGD, TWD, KRW, KRA, INR, MXN, BRL, PLN, HUF, CZK, TRY, ILS, ZAR for a maximum duration of 12 months.
Benefits
- Currency exchange rate known from the moment the contract comes into force and for a set period.
- Possibility of proceeding with the early exercise of rights on the basis of the contract exchange rate without a swap point effect.
- No premium to pay.
Limits
- Flexiterm does not allow for any benefit from an improvement.
- Upon expiry, the position must be terminated and cannot be continued.
- In the case of early cancellation of the cover, the cash payment to be paid will be based on the conditions of the market at the time.
Example
The business has signed a purchase contract that will lead it to pay $2 m to its supplier between 15 May and 15 July 2017. It implements a purchasing Flexiterm in USD for $2 m, with a starting date of 15 May 2017 and a deadline of 15 July 2017 at the rate of 1.1325. The business could choose an immediate start but the staggered start date corresponds to its needs and allows it to benefit from a portion of the deferral from the EUR (in our example: EUR/USD = 1.1288 cash and 1.1425 in the long term).
And more
With a network of 21 trading rooms around the world, including 5 liquidity centres in London, Paris, New York, Hong Kong and Tokyo, Crédit Agricole Group gives you control of your exchange rates:
- by offering turnkey solutions for more than 100 currencies
- by offering you a complete range of products which responds to your needs (simple & complex, coverage and optimisation)
- by making our region market specialists available to you and their local experts in more than 40 countries.
At the start or during the procedures, we will support you through all your transactions:
- by identifying with you in advance any potential exposures related to your development,
- by drawing up a programme with you of coverages adapted to your situation, as well as to your strategy and your investor profile,
- by executing your orders as best as possible,
- by ensuring proactive monitoring to offer you alterations depending on changes in market conditions.
