TERMIUM Plus^®

Record 1,  Textual support,  English

Record number: 1, Textual support number: 1 DEF

The arrangement of a forward foreign exchange contract to protect a buyer or seller of foreign currency from unexpected fluctuations in the exchange rate.  3, record 1, English, - forward%20cover

Record 1,  Textual support,  French

Record number: 1, Textual support number: 1 DEF

Contrat conclu entre une entreprise et sa banque en vertu duquel des devises sont achetées ou vendues par avance, à un cours fixé et à une échéance déterminée, moyennant un report ou un déport variable selon la devise et la durée du contrat.  2, record 1, French, - couverture%20de%20change%20%C3%A0%20terme

Record 1,  Textual support,  Spanish

Record number: 1, Textual support number: 1 DEF

Concertación de un contrato de cambio de divisas a plazos para proteger al comprador o vendedor de divisas de fluctuaciones inesperadas en el tipo de cambio.  1, record 1, Spanish, - cobertura%20a%20plazo

Record 2,  Textual support,  English

Record number: 2, Textual support number: 1 DEF

The purchase/sale of foreign currency at some future specified date(Fixed Forward Contract) or between two specified dates(Option Forward Contract). [Klein, Gerald. Dictionary of Banking. Pitman Publishing, 1995].  4, record 2, English, - forward%20foreign%20exchange

Record 2,  Textual support,  French

Record 2,  Textual support,  Spanish

Record 3,  Textual support,  English

Record number: 3, Textual support number: 1 DEF

In the foreign exchange market, it is the margin between two currencies and applicable when the forward rate of one currency is cheaper and the discount is added to the spot rate. [Klein, Gerald. Dictionary of Banking. Pitman Publishing, 1995]  3, record 3, English, - discount

Record 3,  Textual support,  French

Record number: 3, Textual support number: 1 DEF

Différence entre le cours d'une devise sur le marché des changes et le prix de cette devise à terme, quand cette différence est négative. [...] «Il y a déport quand le prix du terme est inférieur au cours du comptant».  4, record 3, French, - d%C3%A9port

Record number: 3, Textual support number: 1 OBS

déport : terme normalisé par l'AFNOR.  5, record 3, French, - d%C3%A9port

Record 3,  Textual support,  Spanish

Record 4,  Textual support,  English

Record number: 4, Textual support number: 1 DEF

A forward foreign exchange contract incorporated into an underlying equity option or equity swap structure which allows the investor to lock in a known foreign exchange flow and eliminate currency risk.  3, record 4, English, - quanto

Record number: 4, Textual support number: 1 CONT

Quantos are often known as correlation products; that is, pricing of the product must incorporate not only the interest differential between the two currencies in question, but also any correlation which may exist between the currency and the underlying index.  3, record 4, English, - quanto

Record number: 4, Textual support number: 1 OBS

Quantos are sometimes known by the more formal name of guaranteed exchange rate contract.  3, record 4, English, - quanto

Record 4,  Textual support,  French

Record number: 4, Textual support number: 1 DEF

Instrument dérivé dont le sous-jacent est libellé dans une monnaie, mais sur lequel les paiements sont effectués en une autre monnaie.  2, record 4, French, - quanto

Record 4,  Textual support,  Spanish

Record 5,  Textual support,  English

Record number: 5, Textual support number: 1 DEF

[A situation] where an investment is made in a foreign currency asset to benefit from a more attractive rate of interest without simultaneously taking out forward exchange cover to protect an investor against the risk of intervening exchange rate changes.  2, record 5, English, - uncovered%20interest%20arbitrage

Record 5,  Textual support,  French

Record 5,  Textual support,  Spanish

Record 6,  Textual support,  English

Record number: 6, Textual support number: 1 CONT

In the case where the premium on foreign exchange is positive, domestic investors can expect that holding an uncovered foreign exchange position will yield a profit over and above what could be obtained by "locking in" the domestic currency value of their foreign currency holdings at the prevailing forward exchange rate.  2, record 6, English, - domestic%20investor

Record 6,  Textual support,  French

Record 6,  Textual support,  Spanish

Record number: 6, Textual support number: 1 DEF

El Estado, las personas naturales nacionales, las personas jurídicas nacionales que no persigan fin de lucro y las empresas nacionales.  2, record 6, Spanish, - inversionista%20nacional

Record number: 6, Textual support number: 1 OBS

Se consideran también como inversionistas nacionales, las personas nacionales extranjeras con residencia interrumpida en el país receptor no inferior a un año, que renuncien ante el organismo nacional competente, el derecho de reexportar el capital y de transferir utilidades al exterior.  2, record 6, Spanish, - inversionista%20nacional

Record 7,  Textual support,  English

Record number: 7, Textual support number: 1 DEF

Formal name for Bank and IDA invetsment authority, approved by the Executive Directors April 18, 1989, which extends the right of the Bank to invest in certain instruments. Changes include removal of specific limitations on futures and options, authorization to use currency-hedged, covered forward invetsments, acceptability of foreign currency denominated government obligations if equivalent to AA rated securities, IDA's authority equivalent to the Bank's and others.  1, record 7, English, - General%20Investment%20Authorization

Record 7,  Textual support,  French

Record 7,  Textual support,  Spanish

Record 8,  Textual support,  English

Record number: 8, Textual support number: 1 DEF

A currency hedged strategy where, because of the difference in shape of the yield curves of two currencies, the difference in interest rates between these two currencies is not reflected in forward foreign exchange rates, giving arbitrage opportunities under which bonds of equivalent duration in these currencies can be swapped and the currency exposure hedged.  1, record 8, English, - yield%20pickup

Record 8,  Textual support,  French

Record 8,  Textual support,  Spanish

Record 9,  Textual support,  English

Record number: 9, Textual support number: 1 DEF

Spot purchase of foreign exchange and forward resale of the same currency against domestic currency.  1, record 9, English, - outward%20swap

Record 9,  Textual support,  French

Record 9,  Textual support,  Spanish

Record 10,  Textual support,  English

Record number: 10, Textual support number: 1 DEF

Investing dollars in an instrument denominated in a foreign currency and hedging the resulting foreign exchange risk by selling the proceeds of the investment forward for dollars.  2, record 10, English, - covered%20interest%20arbitrage

Record 10,  Textual support,  French

Record 10,  Textual support,  Spanish

Record 11,  Textual support,  English

Record number: 11, Textual support number: 1 DEF

A deposit where the funds are converted into a foreign currency and are placed on deposit with a bank which, through a forward contract, has undertaken to convert them back to the domestic currency at maturity.  1, record 11, English, - swap%20deposit

Record 11,  Textual support,  French

Record number: 11, Textual support number: 1 DEF

Fonds convertis en monnaies étrangères et confiés à une banque qui s'engage, par un contrat à terme, à les reconvertir en monnaie nationale à l'échéance.  2, record 11, French, - d%C3%A9p%C3%B4t%20swap

Record 11,  Textual support,  Spanish

Record 12,  Textual support,  English

Record number: 12, Textual support number: 1 DEF

Spot sale of foreign exchange and forward repurchase of same foreign currency against domestic currency.  1, record 12, English, - inward%20swap

Record 12,  Textual support,  French

Record 12,  Textual support,  Spanish