Derivatives and Hedging Solutions

Manage foreign exchange and interest rate risks through our treasury hedging solutions.

Benefits

Managing foreign exchange and/or interest rate exposures

Mitigate adverse effects from volatile movements in the exchange rates or interest rates through our hedging solutions.

Tailor-fit treasury hedging solutions

Treasury solutions are tailored depending on the nature and hedging needs of your business.

Products and services

Forward Contracts

Forward Contracts enable two parties to lock in an exchange rate today to buy or sell a particular currency for settlement on a specified future date. This hedging solution is suitable for customers who want to:

Fix their exchange rate for a future date
Protect their funds against price and foreign exchange risk
Peg their costs and protect their profit margins

Swap Contracts

Swap Contracts allow two parties to exchange currencies and/or cash flows, depending on the type of contract agreed upon. This hedging solution is suitable for customers who want to:

Protect their funds against foreign exchange and/or interest rate risk
Address mismatches in their assets and liabilities
Look for funding alternative

Foreign Exchange Option Contract

A Foreign Exchange Option Contract is an instrument that gives the purchaser (option holder) the right, but not the obligation, to buy or sell a specified currency against another at a specified exchange rate on or before a specified date. This hedging solution is suitable for customers who want to limit their foreign exchange losses but would like to enjoy foreign exchange rate movements in their favor.

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Frequently asked questions

What are Derivatives and Hedging Solutions?

Derivatives and Hedging Solutions are contracts that enable customers to protect themselves from adverse movements in the financial markets (e.g., foreign exchange rates and interest rates).

What are the different kinds of Forward Contracts provided by BPI?

These are the different Forward Contracts available for your needs:

Deliverable Forward: A contract between two parties to buy or sell a particular currency on a specified future date.
Non-Deliverable Forward (NDF): A variant of a Foreign Exchange Forward that does not involve an actual exchange of principal amounts.

What are the different kinds of Swap Contracts provided by BPI?

These are the different Swap Contracts available for your needs:

Foreign Exchange (FX) Swaps: A simultaneous purchase and sale of identical amounts of one currency for another with two different value dates.
Interest Rate Swaps (IRS): A transaction between two counterparties to exchange interest payments (fixed to float or vice versa) over a specified period by reference to a notional principal amount.
Cross Currency Swaps (CCS): A special type of Interest Rate Swap in which the interest and notional amounts being swapped are denominated in different currencies.
Non-Deliverable Swap: A transaction wherein the counterparties agree to exchange principal amounts and interest payments denominated in two different currencies on a periodic basis (e.g., annually, semi-annually, quarterly) based on agreed market rates or benchmark rates over the life of the contract.

Who should I contact for any questions or inquiries?

For inquiries and comments, send us a message or call our 24-hour BPI Contact Center at (+632) 889-10000.

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General Risk Disclosures / Disclaimers:

Certain investment products and hedging solutions included in this webpage may not be eligible for sale in other jurisdictions and may not be suitable for the risk profile of the recipient of the information.

The information published or included herein is for the knowledge of the customer only and should not be interpreted as an offer to buy or sell securities, currencies, and derivatives, or as an investment advice of any kind.

This webpage should not be used as the sole basis for any financial decision to invest in any security or to participate in any transaction and should not be taken as a substitute for the exercise of judgment by customers, who should obtain separate legal or financial advice.

Any investment or hedging solution is subject to different risks, with the level of risk being dependent on a variety of factors. The value of securities or portfolios may fluctuate daily, and even become valueless, ultimately resulting in customers incurring losses. This market risk and other risks inherent in the products presented in this material are deemed understood by and are acceptable to the customer. Investing in products such as bonds and different types of securities, trust accounts, and other similar instruments, does not provide guaranteed returns, and is not covered by the Philippine Deposit Insurance Corporation (PDIC).

As such, prior to engaging in any of the products offered herein, the customer should have fully understood the nature of the products and the extent of exposure to risks, and should have independently determined that the product is appropriate based on the customer’s risk profile.

BPI does not in any way guarantee the performance of the treasury products and shall not be responsible for any loss sustained except where such loss arises solely out of BPI’s acts and omissions done or suffered in evident bad faith, or through gross negligence, willful misconduct or material breach of duty or contractual obligation.

Cashflow overview

Investments overview

Financing overview

Transactions overview

Asset Protection overview

Employee Care overview

Derivatives and Hedging Solutions

Managing foreign exchange and/or interest rate exposures

Tailor-fit treasury hedging solutions

Forward Contracts

Swap Contracts

Foreign Exchange Option Contract

What are Derivatives and Hedging Solutions?

What are the different kinds of Forward Contracts provided by BPI?

What are the different kinds of Swap Contracts provided by BPI?

Who should I contact for any questions or inquiries?

Trade Finance and Services

Outward Remittance

Foreign Exchange

Cashless Payment Acceptance

General Risk Disclosures / Disclaimers:

Certain investment products and hedging solutions included in this webpage may not be eligible for sale in other jurisdictions and may not be suitable for the risk profile of the recipient of the information.

The information published or included herein is for the knowledge of the customer only and should not be interpreted as an offer to buy or sell securities, currencies, and derivatives, or as an investment advice of any kind.

This webpage should not be used as the sole basis for any financial decision to invest in any security or to participate in any transaction and should not be taken as a substitute for the exercise of judgment by customers, who should obtain separate legal or financial advice.

As such, prior to engaging in any of the products offered herein, the customer should have fully understood the nature of the products and the extent of exposure to risks, and should have independently determined that the product is appropriate based on the customer’s risk profile.

Regulated by the Bangko Sentral ng Pilipinas. https://www.bsp.gov.ph, BSP Webchat https://www.bsp.gov.ph

SMS: 021582277 & BSP CAMS Facebook https://www.facebook.com/BangkoSentralngPilipinas

Cashflow overview

Investments overview

Financing overview

Transactions overview

Asset Protection overview

Employee Care overview

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Derivatives and Hedging Solutions

Managing foreign exchange and/or interest rate exposures

Tailor-fit treasury hedging solutions

Forward Contracts

Swap Contracts

Foreign Exchange Option Contract

What are Derivatives and Hedging Solutions?

What are the different kinds of Forward Contracts provided by BPI?

What are the different kinds of Swap Contracts provided by BPI?

Who should I contact for any questions or inquiries?

Trade Finance and Services

Outward Remittance

Foreign Exchange

Cashless Payment Acceptance​

General Risk Disclosures / Disclaimers: ​

Certain investment products and hedging solutions included in this webpage may not be eligible for sale in other jurisdictions and may not be suitable for the risk profile of the recipient of the information. ​

The information published or included herein is for the knowledge of the customer only and should not be interpreted as an offer to buy or sell securities, currencies, and derivatives, or as an investment advice of any kind.​

This webpage should not be used as the sole basis for any financial decision to invest in any security or to participate in any transaction and should not be taken as a substitute for the exercise of judgment by customers, who should obtain separate legal or financial advice. ​​

As such, prior to engaging in any of the products offered herein, the customer should have fully understood the nature of the products and the extent of exposure to risks, and should have independently determined that the product is appropriate based on the customer’s risk profile. ​​

Regulated by the Bangko Sentral ng Pilipinas. https://www.bsp.gov.ph, BSP Webchat https://www.bsp.gov.ph

SMS: 021582277 & BSP CAMS Facebook https://www.facebook.com/BangkoSentralngPilipinas

Cashless Payment Acceptance

General Risk Disclosures / Disclaimers:

Certain investment products and hedging solutions included in this webpage may not be eligible for sale in other jurisdictions and may not be suitable for the risk profile of the recipient of the information.

The information published or included herein is for the knowledge of the customer only and should not be interpreted as an offer to buy or sell securities, currencies, and derivatives, or as an investment advice of any kind.

This webpage should not be used as the sole basis for any financial decision to invest in any security or to participate in any transaction and should not be taken as a substitute for the exercise of judgment by customers, who should obtain separate legal or financial advice.

As such, prior to engaging in any of the products offered herein, the customer should have fully understood the nature of the products and the extent of exposure to risks, and should have independently determined that the product is appropriate based on the customer’s risk profile.