Par Forward is yet another hedging instrument that allows corporates to hedge their FX exposures more effectively.
- Par Forward is a series of FX forward contracts with different settlement date and all such contracts having a common exchange rate
- A company may have a series of receipts in a foreign currency and wishes to convert them back into either their domestic currency or another currency of their choice using a common exchange rate
- Cashflows being hedged can be at irregular intervals or of irregular notionals
- Straight forward hedging and cashflow management