FX forward index
12 September, 2012
National Bank of Georgia is starting to publish FX forward index. The calculation of the index is based on FX forward rates of Georgian commercial banks on interbank forward market. Individuals and companies make forward deals with Georgian commercial banks who offer this service (ten commercial banks as of today). The price for individual forward contract is determined by commercial bank. The index published by the central bank can be used a proxy of average market forward prices.
FX forward is a widely used financial instrument which is used to hedge FX risks. FX forward allows purchasing foreign currency today with the settlement date in the future and with the predetermined exchange rate. FX forward rates represent the difference between interest rates of two currencies. FX forward rate is not a forecast of the exchange rate.
The detailed information about FX forwards can be found on Central Bank’s webpage (FAQ section) and the webpages of the commercial banks.
FX Forward index will be updated daily and available on the home page of the Central Bank.
National Bank of Georgia
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