Georgian National Bank starts publishing index of currency forwards
Georgia, Tbilisi, Sept 13 /Trend N.kirtzkhalia/
The National Bank of Georgia began to publish an index of currency forwards. Calculation of the index is based on the interbank forward market rates, established by commercial banks, the National Bank of Georgia told Trend on Thursday.
Individuals and legal entities conclude forward contracts with the commercial banks, which offer such services (currently ten commercial banks). A commercial bank defines the price of the forward, and the index, established by the National Bank will help the consumer to get an idea of the market (average) price of the forward.
Currency forward contract is a widely used financial instrument used to insure currency risk.
Forward allows to conclude today's currency transaction by pre-defined rate and the corresponding payment is made in the future. Forward index is the difference between the two currency interest rates. Forward is not a forecast of the exchange rate.
It is possible to get more information on currency forwards on the site of the National Bank and commercial banks.
Index of currency forwards is updated daily.