A forward exchange contract is a contract that requires delivery on a specified future date of one currency in return for a specified amount of another currency.

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A forward exchange contract is a contract that obligates two parties to exchange a specific amount of currencies at a future date, with the exchange rate previously agreed upon. The purpose of forward exchange contracts is to manage the risk of changes in exchange rates by locking in a specific rate for a future transaction.

A Forward Exchange Contract Is a Contract That Requires Delivery