Whether you decide to take your payments in Euro or Sterling is entirely your choice:
With our experience and expertise, we can help you manage exposure to exchange rate movements when you opt to take your payments in Euros.
You could choose to agree an exchange rate for an agreed payment value with us now, and you can work out exactly how much you’re getting.
Forward sell a percentage of Euro receipts now, and then waiting to see how the market looks and consider further forward sales later in the year.
In summary, you control when and at what exchange rate you lock in conversion of your Euro calculated BPS entitlement into a Sterling payment amount.
You could choose to exchange your euros on the date you receive them, or any other date you choose to transact. With a spot transaction you can exchange your euros for sterling at the current exchange rate with settlement typically within 2 working days.
This is a contract between you and the bank to buy euros in exchange for sterling on a specified future date at an exchange rate agreed at the time of setting up your contract.
Essentially this works like a Forward Contract and sets a pre-agreed exchange rate for exchanging your euros to sterling, but offers the flexibility of being able to transact within a specific date range. This is helpful when you are uncertain about the timing of payments you will receive.
For extra peace of mind and to acknowledge your need for greater flexibility, our Time Option Forward Contract is available for up to six months, giving you more time to exchange Euros at an agreed exchange rate.
We help businesses across the country manage the risks associated with dealing in foreign currencies. Share our knowledge and experience by speaking to your Agribusiness Manager today.
As the contracted terms of the Forward Contract and Time Option Forward Contract are fixed at the outset, and commit you to selling euros at an agreed price regardless of where the exchange rate is on the date of settlement, you will not be able to participate in favourable market movements. Any alterations to these contracted terms, including early termination may incur a break cost. This break cost will depend upon the level of exchange rates at that time. Terms, conditions and charges are available on request. We are not advising you on which product to take or that Foreign Currency hedging is appropriate for you. Some Foreign Currency hedging products are complex. To obtain advice please contact an independent third party adviser. Please be aware that there may be a fee for any advice given.