Foreign Exchange is the sale of one currency and purchase of another. In today’s complex international market, you need to minimize the uncertainty facing your business. To help manage your foreign exchange risk we offer Spot and Forward Contracts. Such contracts can help reduce the volatility of foreign trade transactions.
A Spot Contract allows you to purchase one currency and sell an equivalent amount of another for delivery in two business days. If you receive payment in a foreign currency, National Penn Bank can help you quickly convert the money to U.S. dollars. Likewise, if you are required to make a payment in a foreign currency we can help you make it.
A Forward Contract allows you to purchase one currency and sell another at some future date. It eliminates the risk of adverse movement in the exchange rate between initiation and completion of the transaction. It is ideal for imports or exports when payment terms have been granted, and it aids in the budget process by locking in the cost of goods sold or purchased and the related profit.