CA final SFM
s.shamily das (student) (56 Points)
15 February 2019
Will an importer book a forward purchase contract or forward sale contract to mitigate his risk? Pls explain
3 Replies
Back in the Game
(a)
(1273 Points)
Replied 15 February 2019
An importer is expecting to pay in future in foreign currency,hence he is in need of foreign currency .Thus he will book a forward purchase contract to buy on a future date and then use to pay the Vendor outside india.
s.shamily das
(student)
(56 Points)
Replied 15 February 2019
Thank you. One more doubt..importer booked a forward contract @ 64.40 and bank covering its position in the market @ 64.28..does it mean bank books a forward sale
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