Swaps & Forwards

An FX Forward transaction is an obligation to buy/sell FX in the future at a specific date with the price and amount agreed upon on the trade day. Forward exchange rates in Pakistan are usually quoted for periods ranging from overnight up to 12 months; the price of the exchange rate is settled for delivery in the future. SBL GM offer several variants of this product.

A swap transaction is the simultaneous buying and selling of one currency against another, in approximately equal amount, for different maturity (settlement) dates. The difference in the exchange rates used for any one of two currencies is derived from interest rate differentials of the related currencies, and influenced by demand and supply.