Currency Risk Management

Leaving currency exposures unhedged is a risky strategy for profitability in today’s volatile markets.

Clients can choose from a range of solutions to manage and hedge currency risk.

Foreign Exchange

Al Masraf offers customers competitive pricing for foreign currency transactions in all major International & Regional currencies. We leverage our international network and correspondent banking relations to offer faster execution & delivery of foreign exchange services. Our team of Treasury professionals provide client coverage from our offices in Abu Dhabi and Dubai.

FX Spot

Available to all customer segments. Execute immediate transactions at current market rates through all banking channels including online service.

Forward contracts

Forward Contracts are simple yet effective solutions to hedge currency risk. A forward locks the exchange rate at a future date, thereby hedging the risk of exchange rate movement. This allows companies to budget and plan the exchange rate for future payments.

FX Swaps

FX Swap is a simultaneous purchase and sale of specific amounts of one currency for another at current spot rate, with a simultaneous agreement to reverse the exchange at a pre-agreed forward rate on a specified future date.

FX Swaps are widely used to protect against fluctuations in exchange rates, making future payments more predictable.

FX Swaps allow companies to utilize the funds they have in one currency to fund obligations denominated in a different currency, without incurring foreign exchange risk. It is an effective and efficient cash management tool for companies that have assets and liabilities denominated in different currencies.

These services are designed for businesses and institutions and are not available to sole proprietorships or individual clients. Manage your currency risk and plan for future transactions with our flexible swap and forward contracts.

Interest Rate Risk Management

• •Companies are highly motivated to reduce interest rate risk to protect profitability.
• •Interest rate swaps (IRS) offer a mechanism to transfer a fixed rate obligation into a floating rate or vice versa.
• •A company that has a loan linked to a floating rate benchmark (SOFR/EIBOR/EURIBOR) runs the risk of rise in borrowing costs in a rising interest rate scenario.
• •An Interest Rate Swap helps ensure stability of cash flows, hedge against rise in interest rates and stability of profitability and manage cost of borrowing.

Fixed Income

Al Masraf is an active player in the Regional Fixed Income market.

Our team has several decades of collective experience in trading and investing in Fixed Income markets.

We provide access to markets across the globe and offer bonds and sukuk denominated in various currencies. We actively make markets in regional securities and can execute secondary market trades on behalf of our clients in almost all listed / unlisted securities.

Al Masraf also provides custody services for Fixed Income securities.