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Financial Markets

FX Hedging

Companies which have revenue and expenditure flows in different currencies (primarily international trade businesses) are exposed to exchange rate risk.

Hedging Instruments

FX hedging instruments available in the market are based on the setting of a fixed price at which foreign currency is bought or sold on a specific future date (forward rate).

Forward Contracts (Forex Forwards)

Forex forwards are contracts to buy or sell foreign currency for dinars, with both currencies delivered on an agreed future date at an exchange rate agreed in advance (forward rate).

Covered Forwards

Covered forwards are contracts to buy foreign currency under which a company deposits a part or total of the dinar equivalent value in advance and receives foreign currency on an agreed future date.

Forex Swaps

Forex swaps involve simultaneous purchase and sale of two currencies at predetermined exchange rates, but at two different value dates.


Questions relating to foreign exchange hedging may be sent to the e-mail address devizni.hedzing@nbs.rs.

Q & As About The Decision On Financial Derivative Transactions
2012-01-18 09:48:28.0 Here are the answers to most frequently asked questions by the public about the application of the provisions of the Decision Financial Derivative Transactions (“RS Official Gazette” No 85/2011).
Weakening of the Dinar Driven by Economic Movements in Some Eurozone Countries
2011-07-13 13:43:27.0 The dinar weakened over the last two days in response to elevated uncertainty surrounding economic turmoil in some eurozone countries...
 
FX Hedging Instruments Available in the Market
2011-04-29 14:04:37.0 FX hedging instruments serve to insure oneself against exchange rate volatility in either direction. Just as importers may use forwards to buy foreign exchange, exporters may use them to buy dinars...
 
FX Hedging Conference in Užice
2011-03-30 15:18:13.0 In its Užice branch the NBS hosted the FX Hedging Conference aimed at further promotion of FX hedging instruments...
 
Kragujevac Hosts the FX Hedging and Dinar Savings Conference
2010-10-27 16:58:31.0 The National Bank of Serbia’s Branch in Kragujevac hosted today a conference themed “The Importance of FX Hedging and Promotion of Dinar Savings”...
 
Speech of Vice Governor Bojan Marković
2010-09-18 17:27:22.0 Dinarization Strategy in Serbia - Speech of Vice Governor Bojan Marković at ACI Serbia Annual Assembly
NBS Branch in Novi Sad Hosts FX Hedging Conference
2010-08-17 13:35:35.0 Following the successful FX Hedging Conference in the NBS Head Office in Belgrade, the National Bank of Serbia organised a conference on the same theme in its Novi Sad Branch...
 
Related Topics...
Website links for bank offers of FX hedging instruments
Publications
Frequently Asked Questions