4.1 Forward Rates
This topic describes the forward rate and discount rates fot the FX contracts.
When a forward FX contract is revalued using the rebate method, an exchange rate (for the currencies involved) referred to as a 'Forward rate' is used. The forward rate for a currency (for a specific period) is computed using the spot rate and the prevailing interest rate.
Forward exchange rates for currency pairs is maintained in the FX Forward Rate Maintenance screen. These forward rates are used when the contracts in different currencies are revalued using the Rebate Revaluation method.
The procedure to maintain forward rates is explained in the FX Module Specific Tables Maintenance topic.
Parent topic: Beginning of Day Operations