Foreign exchange

Your company is active in the international marketplace. No matter how carefully you manage your risks, you could still be exposed to foreign exchange (FX) risks. Incurring such risks is probably not part of your business objectives, and you need someone to help you manage these foreign exchange risks with the right hedging solutions. Wherever your risk may lie, ING is here is help you cover your foreign exchange risk wherever and whenever possible. We offer foreign exchange derivative products to help clients mitigate current and future foreign currency exposures.

  • Optimise short-term cash management strategies
  • Cash conversion of positions into another currency
  • Reduce impact fluctuations in foreign exchange rates

Exposure to foreign exchange risks can happen in any number of ways: through your customers’ payments in a foreign currency, your own commitments in a foreign currency, or assets and liabilities on your balance sheet in a foreign currency. Other potential foreign exchange risks may lie in your subsidiaries, investments or divestments, or repayment in loans and/or bonds in a foreign currency.

Our product offering

We can provide you with a multitude of solutions and flexibility:

  • FX Spot - an FX Spot transaction allows you to buy or sell immediately at the current exchange rate. Having an appropriate execution strategy is necessary since exchanging large amounts of foreign currency can cause fluctuations in the market.

  • FX Forward - currencies are exchanged at an agreed date in the future and at a predetermined exchange rate set at inception. An FX Forward is the most common and basic strategy to hedge against future currency risk.

  • FX Swap - this option involves two simultaneous currency transactions. One transaction is immediate, or on the spot, and the other is inverse through a forward contract. An FX Swap allows you to exchange a current excess or deficit in a foreign currency into your local currency, and reverse this at an agreed date in the future at an predetermined exchange rate.

  • FX Option - an FX Option is a derivative in which the owner has the right but not the obligation to exchange money denominated in one currency to another at a pre-agreed exchange rate on a specified date. You can potentially profit from a better exchange rate after deducting the required fee.

Tailor-made products and solutions for every scenario

Several other products are available to you such as FX Non-deliverable Forwards/Swaps, FX Exotic Options, and many more tailor-made (often zero-premium) FX Option structures. We can assess your situation and requirements on a case-by-case basis to offer you the best foreign exchange hedging solution at the right moment.

Why partner with us

Our purpose is to empower people to stay a step ahead in life and in business. So whatever your financial needs, whether you are looking to expand and want strategic advice, or just want to make your day-to-day banking more efficient, we are here to support your business ambitions.

  • Serving corporate clients and financial institutions in over 40 countries.
  • We pair local and global insight with sector knowledge with financial expertise.
  • We are ranked as a leader in sustainability and we are included in the FTSE4Good Index.
  • Global Finance

    Best Bank for Cash Management in W. Europe

    2020
  • Global Finance

    ING's AI tool Katana named Innovator

    2019
  • Environmental Finance

    ING wins Green bond of the Year award

    2019