The FX Forward Index is an indicative measure of the market (average) prices of FX forward contracts offered by commercial banks in Georgia's financial market. It is calculated based on the rates set by commercial banks in the interbank forward market. Individuals and legal entities enter into forward contracts with the commercial banks that offer this service. The forward price for a specific contract is determined by the commercial bank, while the index published by the National Bank of Georgia provides consumers with a general understanding of the market (average) prices for FX forwards. 

FX forward contract is a widely used financial instrument designed for hedging (insuring against) currency risks. A forward contract enables one to agree today on a currency trade at a predetermined exchange rate, with settlement taking place in the future. The Forward Index reflects the difference between the interest rates of two currencies. A forward contract is not a forecast of the exchange rate.