Eligibility is determined by EDC based on:
- The managerial, technical and financial capabilities of your company
- Review of your foreign exchange hedging strategy
- The terms of your financial institution’s foreign exchange facility agreement
By locking in a rate in advance, you’ll feel confident pricing your product or service, so you can increase the accuracy of your cash flow forecasts.
With EDC’s FXG, you can secure FX contracts without providing collateral, making financial institutions more confident in lending you money against those assets.
Margin calls (the amount required as collateral for your FX hedge) can be unpredictable. With EDC’s FXG, you don’t need to meet those calls until the prearranged threshold of the guarantee is reached.
By allowing EDC to cover the working capital needed for advanced FX hedging tools, you can book longer FX contracts (up to three years) and use varying risk products and parameters.
We use EDC’s Foreign Exchange Guarantee, which allows us to develop our markets without having to worry about currency risks and also provides pricing stability for our customers.