Flexible Forwards

Flexible Forwards combine the security of a Forward Exchange Contract with the flexibility of a Currency Option.

Currency Risk
Currency risk arises because the market forces of supply and demand cause the value of the Australian dollar to fluctuate.

In general, an importer paying for goods or services in a foreign currency would consider an appreciating Australian dollar favourable, but would seek protection against a depreciating dollar, because of the potential for an increased cost in the final price of the goods or services.

Similarly, an exporter receiving foreign currency as payment for goods or services would consider a depreciating Australian dollar favourable, but would seek protection against an appreciating Australian dollar because of the potential for loss incurred as a result of a drop in the value of the final payment received.

There are a number of ways to manage your currency risk. One of the more traditional methods is through a Forward Exchange Contract, which offers exchange rate protection. But if you’ve ever locked in a Forward Exchange Contract only to have exchange rates move against you, then you might consider Flexible Forwards as a useful risk management alternative.

We also offer Currency Options.

Flexible Forwards
Flexible Forwards provide protection against adverse exchange rate movements as well as the potential to benefit from favourable exchange rate movements. We offer an extensive range of Flexible Forwards which can be customised to meet your specific business needs.

How can your business benefit?
Flexible Forwards offer:

Points to consider
There are several features of a Flexible Forward you need to consider. A premium may be payable and your 'protected rate' may be below the benchmark forward exchange rate at the time of the transaction. If you want more flexibility you might consider a Currency Option.

Important information about advice
As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances.

All products mentioned on this web page are issued by the Commonwealth Bank of Australia, view our Financial Services Guide (PDF 59kb). View Product Disclosure Statements (PDSs) for  Flexible Forward (PDF 127kb), Flexible Forward Bonus (PDF 133kb), Flexible Forward Convertible (PDF 131kb), Flexible Forward Convertible Plus (PDF 141kb), Flexible Forward Participating (162kb) , FlexibleForward Double No Touch (157kb) ,  Flexible Forward Convertible Knock Out (PDF 151kb), Flexible Forward Cash Settled (PDF 129kb),  Flexible Forward Protector (PDF 128kb) and Flexible Forward Collar (PDF 128kb)and consider them before making any decision about these products.