Foreign Exchange Agreement
/ˈfɔrən ɪksˈʧeɪnʤ əˈgriːmənt/
Definitions
- (n.) A legally binding contract between parties to exchange specified amounts of different currencies at a predetermined rate and date.
The company entered into a foreign exchange agreement to hedge against currency fluctuations.
Forms
- foreign exchange agreement
- foreign exchange agreements
Related terms
See also
Commentary
Ensure clear terms on exchange rate, settlement date, and currency amounts to avoid disputes in drafting.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.