SWAP Operations

SWAP operations enable to buy and sell currencies simultaneously in an amount, date and exchange rate agreed upon in advance.

E.g,: a Company needs EUR 100,000 on the 1^st of May, but it has US dollars. At the same time the Company does not want to exchange USD for EUR, because on the 10^th of May the Company will again need USD. In this case the Company will use the Swap mechanism - make a Swap Agreement with Bank Republic, receive needed EUR 100,000 and on the 10^th of May the initial amount will be returned to the Company in USD. 

• SWAP transactions are available in all operating currencies;
• The minimum SWAP amount is limited to USD 100,000 or equivalent in other currencies;
• SWAP maturity period can be from 2 days to 6 months.

FORWARD DIAL

Forward Dial is a futures transaction when parties agree on the Forward Exchange Rate and define the future value date.

Forward Dial that allows customers to hedge (insure security) against risks generated by foreign exchange fluctuations.

E.g., a Company imported goods to Georgia on the 1^st of May. On the 10^th of May the Company will again need to purchase goods worth EUR 100,000 in order to import the next consignment. In this case the Company will make a Forward Agreement with Bank Republic, under which the exchange rate for EUR 100,000 for the 10^th of May will be defined in advance. Thus, the risk of losses caused by exchange rate fluctuation during the period from May 1 till May 10 will be avoided.

• Bank Republic offers Preferential Forward Rates to your company;
• Forward contracts will be made in the following currencies: USD; EUR; GEL; GBP;
• The minimum amount of such transactions is limited to USD 100,000 or equivalent;
• The Forward maturity should not exceed 6 months from the start date.

CURRENCY OPTIONS

Currency Option is a right given to the owner of an Option to purchase/sell different currencies based on the exchange rate and period defined under the Agreement.     

Purpose of Currency Options is: hedging (protection) against the exchange rate risks, no upper limit for possible profits and fixed low limit of loss risks in return for a minimal commission.

E.g., on the 1^st of May a Company is going to participate in a tender and in case of success the Company will have to pay USD 100,000 on the 1^st of August. In this case the Company buys from Bank Republic options to purchase USD 100,000. This gives the Company an opportunity to protect itself from possible losses caused by exchange rate fluctuations in case of winning the tender. If the Company loses the tender, it can always refuse to buy USD 100,000 (opt out).

• Currency Options are the most flexible method of hedging against losses caused by fluctuations in the foreign exchange rate;
• Options hedge risks in all major currencies: USD, EUR, GEL, GBP.
• We offer the best premium rates on the Georgian market.

Do you have any questions or comments?

Please contact us every day, during 24 hours: (8 32) 290 90 90, from mobile: * 90 90.