Private BUSINESS PRIVATE BANKING ABOUT THE BANK C REWARDS
Private
BUSINESS
PRIVATE BANKING
ABOUT THE BANK
C REWARDS
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  1. Business
  2. Currency exchange
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Instant exchange

Exchange currencies in Online bank or mobile app with just one click.

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Better rates

For currency exchange transactions over 7 000 EUR, improved rates could be provided.

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Risk management

Get support from our professionals on risk management for your company's currency exchange risk.

Hedge your currency exchange risk

What are the benefits of hedging currency exchange risk?

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Protection against fluctuations

Protect company from currency fluctuations by locking in favourable exchange rates.

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Financial planning

Plan, forecast, and allocate resources by knowing exchange rates in advance.

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Competitive advantage

Maintain pricing consistency and competitive advantage by reducing risk impact.

Currency Forward


Currency Forward (FX Forward) - a financial contract between two parties to exchange currencies at a fixed rate on a future date. It helps businesses to protect themselves from currency fluctuations by eliminating unexpected losses and possible gains.

  • Choose currency.
  • Decide on the amount.
  • Specify date.
  • Lock the exchange rate.
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  • To reduce the currency risk that may arise due to adverse fluctuations in exchange rates.
  • To improve financial planning, budgeting and reduce uncertainty by providing advanced knowledge of exchange rates.
  • To maintain pricing consistency and reduce the risk of undercutting by competitors with favoorable exchange rates.
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Company produces wood and exports it to the UK. The contract is signed to receive 100 000 GBP in 6 months.

  • Company is concerned that GBP could weaken in the next 6 months, resulting in decreased expected revenues in EUR terms.
  • To avoid uncertainty, the company enters into an FX Forward contract, thereby fixing the current market selling rate of GBP at 0,8800.
  • After 6 months - on the day of settlement, the company uses the pre-agreed rate of 0,8800, regardless of what rate is on the market at that time.
  • By entering into FX Forward contract and fixing the rate company hedged currency exchange risk and avoided potential losses or possible gains from currency exchange fluctuations.
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  • FX Forward agreements are binding, meaning parties can't simply walk away if market conditions change.
  • If market moves adversely, the contract can turn negative, potentially resulting in a cost.
  • Closing the contract before maturity could lead to additional costs if the market has moved against the position.
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Currency Swap


Currency Swap (FX Swap) - a financial transaction where two parties exchange currencies for a specific time period and then reverse the exchange at a predetermined rate.

  • Temporarily borrow one currency for another.
  • Fix rate for future settlement date.
  • The transaction can be carried out in parts, earlier or later than agreed.
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  • Manage liquidity and exchange rate risk simultaneously.
  • Obtain short-term funding in a foreign currency.
  • Provide more flexibility for FX Forward settlement date.
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Company receives 100 000 GBP, which it will need to use after 6 months. Until then company would benefit from using EUR instead.

  • Company decides to lend 100 000 GBP and borrow EUR by concluding FX Swap for 6 months.
  • FX Swap lets company to fix the rate for future exchange back to GBP.
  • In FX Swap GBP is exchanged to EUR according to current EUR/GBP rate and simultaneously the exchange rate to convert EUR back to GBP after 6 months is fixed.
  • FX Swap allowed company to switch from one currency to another for 6 months and then exchange it back at fixed rate by this improving their cashflow.
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  • FX Swap agreements are binding, meaning parties can't simply walk away if market conditions change.
  • If market moves adversely, the contract can turn negative, potentially resulting in a cost.
  • Closing the contract before maturity could lead to additional costs if the market has moved against the position.
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Risks related to FX Forward and Swap

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FX forwards and Swaps are complex instruments and may not be suitable for everyone. They can help manage currency risk, but they also come with potential risks. These risks could alter the course of your hedging strategy and have implications for your overall financial situation. It’s important to remember that market conditions can change rapidly, and past performance is not indicative of future results. Always assess your risk appetite and financial situation.

Platform C Markets

Discover ultimate speed, simplicity and security by managing your currency exchange risk through our Online platform. Hedge it effortesly by executing spot and derivative transactions or placing orders for later execution.

  • Full control of currency risk management in your hands.
  • Real-time access to currency markets and currency derivatives.
  • Quick and easy access and user friendly interface.
  • Information on historic deals and open positions.
Apply for a consultation
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What is platform C Markets?

Online tool for Citadele business customers  with significiant currency risk position where to manage their currency exchange risk by execution and monitoring of currency hedging transactions, like FX Forwards and FX Swaps.

How can I apply?

Contact your manager at the bank or use link below to apply for a consultation.

Is there a subscription fee to use the platform C Markets?

No, all you need is a device with the internet connection.

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What you need to get started?

  • Have a current account at "Citadele" Bank or become a customer.
  • Familiarize yourself with documents regulating deal conclusion and investor protection and apply for LEI code
  • Enter into a master agreement for Swap and Forward currency exchange transactions.
  • To complete the assessment test for the appropriateness of complex financial instruments.
Apply for consultation
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