Overview
The Forward Interest Rate Agreement is such an agreement that the parties agree to buy or lend a certain amount of nominal principal with the agreed interest rate during a specified period commencing from a future time. It determines the interest rate for the said period of time.
The buyer under the agreement aims to mitigate the risk of interest rate hiking during certain period of time in the future, while the seller aims to mitigate the risk of interest rate dropping.
Features
This service enables customers to avoid increase in the costs of future liabilities or decrease in the return on assets as a result of interest rate movement.
Procedures
1. The customer enters into the Master Agreement on Foreign Exchange Wealth Management with ABC.
2. The customer makes a request to ABC, and ABC quotes a price to the customer.
3. The customer provides ABC with the Letter of Authorization for Foreign Exchange Wealth Management.
4. When the transaction is closed, ABC and the customer sign the Customer Transaction Confirmation.
Customer Service Center : 95599
OutletContact Us| Statement Copyright©AGRICULTURAL BANK OF CHINA (ABC) All Rights Reserved
