[et_pb_section fb_built=”1″ _builder_version=”4.4.6″ custom_margin=”-111px|||||” custom_padding=”||0px|||”][et_pb_row column_structure=”1_2,1_2″ _builder_version=”4.5.3″ background_color=”rgba(0,0,0,0.03)” min_height=”103px” custom_margin=”15px||5px||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|tablet” custom_padding=”10px|10px|10px|10px|false|false” box_shadow_style=”preset1″ box_shadow_vertical=”0px” box_shadow_blur=”5px” box_shadow_color=”#ff4c00″][et_pb_column type=”1_2″ _builder_version=”4.4.6″][et_pb_text _builder_version=”4.5.3″ text_font=”Open Sans||||||||” text_font_size=”18px” text_line_height=”1.8em” header_font=”Open Sans|700|||||||” header_text_color=”#000000″ header_font_size=”42px” header_line_height=”1.3em” header_2_font=”|700|||||||” header_2_font_size=”30px” header_2_line_height=”1.5em” custom_margin=”||10px||false|false” custom_padding=”||||false|false” header_font_size_tablet=”36px” header_font_size_phone=”32px” header_font_size_last_edited=”on|tablet” locked=”off”]
How to calculate USD INR Forward Premium & Challenges
[/et_pb_text][et_pb_text _builder_version=”4.5.3″ _module_preset=”default” text_font=”Open Sans||||||||” text_text_color=”#000000″ text_font_size=”18px” text_line_height=”1.8em” ol_line_height=”2em” header_font=”Open Sans||||||||” header_line_height=”1.8em” header_2_font=”Open Sans||||||||” header_2_text_color=”#000000″ header_2_font_size=”32px” header_2_line_height=”1.5em” custom_margin=”||1px|||” custom_padding=”0px||0px|||” text_font_size_tablet=”” text_font_size_phone=”” text_font_size_last_edited=”on|tablet” text_line_height_tablet=”” text_line_height_phone=”1.8em” text_line_height_last_edited=”on|phone” header_2_font_size_tablet=”28px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet”]
Written by QuantArt Market
[/et_pb_text][et_pb_text _builder_version=”4.9.7″ _module_preset=”default” text_font=”Open Sans||||||||” text_text_color=”#0c71c3″ text_font_size=”16px” text_line_height=”1.8em” ol_line_height=”2em” header_font=”Open Sans||||||||” header_line_height=”1.8em” header_2_font=”Open Sans||||||||” header_2_text_color=”#000000″ header_2_font_size=”32px” header_2_line_height=”1.5em” custom_margin=”||1px|||” custom_padding=”0px||0px|||” hover_enabled=”0″ text_font_size_tablet=”” text_font_size_phone=”” text_font_size_last_edited=”on|tablet” text_line_height_tablet=”” text_line_height_phone=”1.8em” text_line_height_last_edited=”on|phone” header_2_font_size_tablet=”28px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” sticky_enabled=”0″]
Forex Hedging |
Updated on: 1st November 2021
[/et_pb_text][/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.4.6″][et_pb_image src=”https://lightpink-wombat-703347.hostingersite.com/wp-content/uploads/2020/08/calculate-USD-INR-Forward-Premium-Challenges.png” alt=”Best Hedging Strategy For Importers, import port” title_text=”calculate USD INR Forward Premium & Challenges” align=”center” _builder_version=”4.5.3″ _module_preset=”default” custom_padding=”||||false|false”][/et_pb_image][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”3.22″ custom_padding=”0px|0px|0|0px|false|false”][et_pb_row _builder_version=”3.25″ custom_padding=”0|0px|0|0px|false|false”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.9.7″ text_font=”Open Sans||||||||” text_font_size=”18px” text_line_height=”1.8em” header_font=”Open Sans|700|||||||” header_font_size=”33px” header_line_height=”1.5em” header_2_line_height=”1.8em” min_height=”102px” hover_enabled=”0″ inline_fonts=”Open Sans” sticky_enabled=”0″]
How to calculate USD INR Forward Premium
QuantArt supports corporates and funds with live USD INR forward premiums and spots so that they get the right rates.
The peculiarity about the Indian forward premium market is that it’s traded directly for month-ends up to 13 months. For any of the G7 currencies, the forward premium can be calculated by using the difference between the two countries’ interest rates typically represented by the interbank term lending rate of that currency. For example, to calculate the forward premium rate for EURUSD for 3 months all you need is 3 Month EURIBOR and 3 Months USD LIBOR.
However, for INR there is no Libor equivalent benchmark and the one which exists is a synthetically created benchmark called MIFOR (Mumbai Interbank forward offer rates). Hence for USDINR forward premiums are traded for every month-end dates starting the current month for 13 months. The premiums are quoted in paisa per USD. For example, if you are on 6th October 2020, you will see a forward premium for 12th October 2020 quoted as maybe 3-4. That means bid is 3 paisa and the offer is 4 paisa. If the spot is 73.50-51 then the export selling rate for 12th October 2020 will be 73.53 and the Import buying rate will be 73.55. Similarly, forward premium rate for December 2020 end could be 62-64 paisa signifying the forward rate would be 74.12 for export and 74.15 for import.
[/et_pb_text][et_pb_button button_url=”https://wa.me/message/S5W24FMCZUKQN1″ url_new_window=”on” button_text=”Connect With QuantArt on Whatsapp” button_alignment=”center” button_text_tablet=”Connect with QuantArt on Whatsapp” button_text_phone=”Connect with QuantArt on Whatsapp” button_text_last_edited=”on|phone” _builder_version=”4.9.7″ _module_preset=”default” custom_button=”on” button_text_size=”27px” button_text_color=”#FFFFFF” button_bg_color=”#29c421″ button_border_width=”6px” button_border_color=”#7CDA24″ button_icon=”%%222%%” background_layout=”dark” hover_enabled=”0″ button_icon_tablet=”” button_icon_phone=”” button_icon_last_edited=”on|desktop” button_text_shadow_style=”preset2″ box_shadow_style=”preset1″ box_shadow_blur=”19px” box_shadow_spread=”-1px” locked=”off” button_text__hover_enabled=”on|desktop” sticky_enabled=”0″ button_text_size_last_edited=”on|phone” button_text_size_phone=”19px”][/et_pb_button][et_pb_text _builder_version=”4.9.7″ text_font=”Open Sans||||||||” text_font_size=”18px” text_line_height=”1.8em” header_font=”Open Sans|700|||||||” header_font_size=”33px” header_line_height=”1.5em” header_2_line_height=”1.8em” min_height=”102px” hover_enabled=”0″ inline_fonts=”Open Sans” sticky_enabled=”0″]
The last working day of every month is traded i.e. if the last day is a holiday then the previous day will be quoted. Also would like to mention that the forward premium is for a period starting spot day which is T+2. For example, if today’s date is 6th October then spot date is 8th October. When we see forward premium for 31st December i.e. the forward premium for a period starting 6th October to 31st December.
Now if you want to book forward for any non-month-end dates like 18th November then the same will be calculated by interpolating premiums of October end and November end. Often linear interpolation will suffice however depending on the shape of the forward premium curve, convexity adjustment could be there in the interpolation.
[/et_pb_text][et_pb_text _builder_version=”4.9.7″ text_font=”Open Sans||||||||” text_font_size=”18px” text_line_height=”1.8em” header_font=”Open Sans|700|||||||” header_font_size=”33px” header_line_height=”1.5em” header_2_line_height=”1.8em” min_height=”102px” hover_enabled=”0″ inline_fonts=”Open Sans” sticky_enabled=”0″]
USD INR Forward Premium Challenge
Interestingly it has been observed that 80% of the corporates do not get the right rate in Fx and hence it is important to have access to the right rates and forward premium calculators. QuantArt supports corporates, funds, and institutions with the right spot and forwards premium rates at a very reasonable cost. To know more contact us, through chat or call us. Are article on Forex Advisory Services Ultimate Guide may interest you
[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.7″ _module_preset=”default”][et_pb_column _builder_version=”4.9.7″ _module_preset=”default” type=”4_4″][et_pb_button button_url=”https://wa.me/message/S5W24FMCZUKQN1″ url_new_window=”on” button_text=”Connect With QuantArt on Whatsapp” button_alignment=”center” button_text_tablet=”Connect with QuantArt on Whatsapp” button_text_phone=”Connect with QuantArt on Whatsapp” button_text_last_edited=”on|phone” _builder_version=”4.9.7″ _module_preset=”default” custom_button=”on” button_text_size=”27px” button_text_color=”#FFFFFF” button_bg_color=”#29c421″ button_border_width=”6px” button_border_color=”#7CDA24″ button_icon=”%%222%%” background_layout=”dark” hover_enabled=”0″ button_icon_tablet=”” button_icon_phone=”” button_icon_last_edited=”on|desktop” button_text_shadow_style=”preset2″ box_shadow_style=”preset1″ box_shadow_blur=”19px” box_shadow_spread=”-1px” locked=”off” button_text__hover_enabled=”on|desktop” sticky_enabled=”0″ button_text_size_last_edited=”on|phone” button_text_size_phone=”19px”][/et_pb_button][et_pb_text _builder_version=”4.9.7″ text_font=”Open Sans||||||||” text_font_size=”18px” text_line_height=”1.8em” header_font=”Open Sans|700|||||||” header_font_size=”33px” header_line_height=”1.5em” header_2_line_height=”1.8em” min_height=”102px” hover_enabled=”0″ inline_fonts=”Open Sans” sticky_enabled=”0″]
Read Also
If USDINR forward premium is higher than interest differential, does that signify INR depreciation?
[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.8.1″ _module_preset=”default”][et_pb_row column_structure=”1_2,1_2″ disabled_on=”off|off|off” module_id=”Regform” _builder_version=”4.9.2″ background_color=”#FFFFFF” background_enable_image=”off” background_blend=”overlay” width=”auto” custom_margin=”||||false|false” custom_padding=”46px|5%|15px|5%|false|false” box_shadow_style=”preset2″ locked=”off”][et_pb_column type=”1_2″ module_id=”getstarted” _builder_version=”4.9.2″ background_enable_color=”off” custom_padding_tablet=”” custom_padding_phone=”|1px||1px|false|false” custom_padding_last_edited=”on|phone”][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Roboto Condensed|700|||||||” text_text_color=”#000000″ text_font_size=”20px” text_line_height=”1.3em” header_font=”Roboto Condensed|700|||||||” header_font_size=”49px” header_4_font=”Roboto Condensed|700|||||||” header_4_text_color=”#000000″ header_4_font_size=”50px” header_4_letter_spacing=”1px” text_orientation=”center” custom_margin=”59px|||||” custom_margin_tablet=”” custom_margin_phone=”0px||0px||false|false” custom_margin_last_edited=”on|phone” custom_padding=”|1%||1%|false|false” header_font_size_tablet=”” header_font_size_phone=”35px” header_font_size_last_edited=”on|desktop”]
Explore and Become our Client.
Write to Us:
Call us:
[/et_pb_text][/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.8.1″ _module_preset=”default” custom_padding=”||||false|false” custom_padding_tablet=”” custom_padding_phone=”|1px||1px|false|false” custom_padding_last_edited=”on|phone”][et_pb_contact_form use_spam_service=”on” recaptcha_list=”QuantArt Hedgenius Form-0″ email=”[email protected]” custom_message=”Home Page||et_pb_line_break_holder||Name: %%Name%%||et_pb_line_break_holder||Company name: %%Company%%||et_pb_line_break_holder||Phone Number: %%Phone_Number%%||et_pb_line_break_holder||Email: %%Email_Id%%||et_pb_line_break_holder||Please mention topics of Interest (optional) :%%Topic_of_Interest%%||et_pb_line_break_holder||” use_redirect=”on” redirect_url=”https://lightpink-wombat-703347.hostingersite.com/thank-you-blog-submission/” success_message=”.” submit_button_text=”Sign up” disabled_on=”off|off|off” _builder_version=”4.9.2″ form_field_text_color=”#a8a8a8″ title_font=”|600|||||||” title_text_align=”center” title_font_size=”29px” title_line_height=”1.3em” form_field_font_size=”14px” background_enable_color=”off” custom_button=”on” button_text_color=”#ffffff” button_bg_color=”#e88137″ button_bg_color_gradient_start=”#b57624″ button_border_width=”0px” button_border_color=”#2879bd” button_border_radius=”6px” button_font=”Open Sans|600|||||||” button_use_icon=”off” button_custom_margin_tablet=”” button_custom_margin_phone=”18px||||false|false” button_custom_margin_last_edited=”on|phone” button_custom_padding=”||||false|false” width=”100%” max_width=”100%” custom_margin=”||||false|false” custom_padding=”||||false|false” title_font_size_tablet=”” title_font_size_phone=”20px” title_font_size_last_edited=”on|phone” form_field_font_size_tablet=”” form_field_font_size_phone=”14px” form_field_font_size_last_edited=”on|phone” box_shadow_style_button=”preset2″ form_field_text_color__hover_enabled=”on|hover” form_field_text_color__hover=”#a8a8a8″][et_pb_contact_field field_id=”Name” field_title=”Name” fullwidth_field=”on” _builder_version=”4.9.2″ form_field_background_color=”#e3e3e8″ form_field_text_color=”#000000″ form_field_font=”Open Sans||||||||” form_field_font_size=”18px” text_orientation=”center” border_radii=”on|7px|7px|7px|7px” border_style_all=”none” button_text_size__hover_enabled=”off” button_one_text_size__hover_enabled=”off” button_two_text_size__hover_enabled=”off” button_text_color__hover_enabled=”off” button_one_text_color__hover_enabled=”off” button_two_text_color__hover_enabled=”off” button_border_width__hover_enabled=”off” button_one_border_width__hover_enabled=”off” button_two_border_width__hover_enabled=”off” button_border_color__hover_enabled=”off” button_one_border_color__hover_enabled=”off” button_two_border_color__hover_enabled=”off” button_border_radius__hover_enabled=”off” button_one_border_radius__hover_enabled=”off” button_two_border_radius__hover_enabled=”off” button_letter_spacing__hover_enabled=”off” button_one_letter_spacing__hover_enabled=”off” button_two_letter_spacing__hover_enabled=”off” button_bg_color__hover_enabled=”off” button_one_bg_color__hover_enabled=”off” button_two_bg_color__hover_enabled=”off”][/et_pb_contact_field][et_pb_contact_field field_id=”Company” field_title=”Company Name” fullwidth_field=”on” _builder_version=”4.9.2″ form_field_background_color=”#e3e3e8″ form_field_text_color=”#000000″ form_field_font=”Open Sans||||||||” form_field_font_size=”18px” text_orientation=”center” border_radii=”on|7px|7px|7px|7px” border_style_all=”none” button_text_size__hover_enabled=”off” button_one_text_size__hover_enabled=”off” button_two_text_size__hover_enabled=”off” button_text_color__hover_enabled=”off” button_one_text_color__hover_enabled=”off” button_two_text_color__hover_enabled=”off” button_border_width__hover_enabled=”off” button_one_border_width__hover_enabled=”off” button_two_border_width__hover_enabled=”off” button_border_color__hover_enabled=”off” button_one_border_color__hover_enabled=”off” button_two_border_color__hover_enabled=”off” button_border_radius__hover_enabled=”off” button_one_border_radius__hover_enabled=”off” button_two_border_radius__hover_enabled=”off” button_letter_spacing__hover_enabled=”off” button_one_letter_spacing__hover_enabled=”off” button_two_letter_spacing__hover_enabled=”off” button_bg_color__hover_enabled=”off” button_one_bg_color__hover_enabled=”off” button_two_bg_color__hover_enabled=”off”][/et_pb_contact_field][et_pb_contact_field field_id=”Phone_Number” field_title=”Phone Number ” fullwidth_field=”on” _builder_version=”4.9.2″ form_field_background_color=”#e3e3e8″ form_field_text_color=”#000000″ form_field_font=”Open Sans||||||||” form_field_font_size=”18px” text_orientation=”center” border_radii=”on|7px|7px|7px|7px” border_style_all=”none” button_text_size__hover_enabled=”off” button_one_text_size__hover_enabled=”off” button_two_text_size__hover_enabled=”off” button_text_color__hover_enabled=”off” button_one_text_color__hover_enabled=”off” button_two_text_color__hover_enabled=”off” button_border_width__hover_enabled=”off” button_one_border_width__hover_enabled=”off” button_two_border_width__hover_enabled=”off” button_border_color__hover_enabled=”off” button_one_border_color__hover_enabled=”off” button_two_border_color__hover_enabled=”off” button_border_radius__hover_enabled=”off” button_one_border_radius__hover_enabled=”off” button_two_border_radius__hover_enabled=”off” button_letter_spacing__hover_enabled=”off” button_one_letter_spacing__hover_enabled=”off” button_two_letter_spacing__hover_enabled=”off” button_bg_color__hover_enabled=”off” button_one_bg_color__hover_enabled=”off” button_two_bg_color__hover_enabled=”off”][/et_pb_contact_field][et_pb_contact_field field_id=”Email_Id” field_title=”Official Email” field_type=”email” fullwidth_field=”on” _builder_version=”4.9.2″ form_field_background_color=”#e3e3e8″ form_field_text_color=”#000000″ form_field_font=”Open Sans||||||||” form_field_font_size=”18px” text_orientation=”center” border_radii=”on|7px|7px|7px|7px” border_style_all=”none” button_text_size__hover_enabled=”off” button_one_text_size__hover_enabled=”off” button_two_text_size__hover_enabled=”off” button_text_color__hover_enabled=”off” button_one_text_color__hover_enabled=”off” button_two_text_color__hover_enabled=”off” button_border_width__hover_enabled=”off” button_one_border_width__hover_enabled=”off” button_two_border_width__hover_enabled=”off” button_border_color__hover_enabled=”off” button_one_border_color__hover_enabled=”off” button_two_border_color__hover_enabled=”off” button_border_radius__hover_enabled=”off” button_one_border_radius__hover_enabled=”off” button_two_border_radius__hover_enabled=”off” button_letter_spacing__hover_enabled=”off” button_one_letter_spacing__hover_enabled=”off” button_two_letter_spacing__hover_enabled=”off” button_bg_color__hover_enabled=”off” button_one_bg_color__hover_enabled=”off” button_two_bg_color__hover_enabled=”off”][/et_pb_contact_field][et_pb_contact_field field_id=”Topic_of_Interest” field_title=”Your Requirement” field_type=”text” required_mark=”off” fullwidth_field=”on” _builder_version=”4.9.2″ form_field_background_color=”#e3e3e8″ form_field_text_color=”#000000″ form_field_font=”Open Sans||||||||” form_field_font_size=”18px” text_orientation=”center” border_radii=”on|7px|7px|7px|7px” border_style_all=”none” button_text_size__hover_enabled=”off” button_one_text_size__hover_enabled=”off” button_two_text_size__hover_enabled=”off” button_text_color__hover_enabled=”off” button_one_text_color__hover_enabled=”off” button_two_text_color__hover_enabled=”off” button_border_width__hover_enabled=”off” button_one_border_width__hover_enabled=”off” button_two_border_width__hover_enabled=”off” button_border_color__hover_enabled=”off” button_one_border_color__hover_enabled=”off” button_two_border_color__hover_enabled=”off” button_border_radius__hover_enabled=”off” button_one_border_radius__hover_enabled=”off” button_two_border_radius__hover_enabled=”off” button_letter_spacing__hover_enabled=”off” button_one_letter_spacing__hover_enabled=”off” button_two_letter_spacing__hover_enabled=”off” button_bg_color__hover_enabled=”off” button_one_bg_color__hover_enabled=”off” button_two_bg_color__hover_enabled=”off”][/et_pb_contact_field][/et_pb_contact_form][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=”1″ disabled_on=”on|on|on” _builder_version=”4.8.1″ _module_preset=”default” custom_padding=”10px||8px|||” disabled=”on” locked=”off”][et_pb_row disabled_on=”off|off|off” _builder_version=”4.5.3″ background_color=”#23B0DC” custom_margin=”20px|auto||auto|false|false” custom_padding=”20px||16px|||” box_shadow_style=”preset3″ locked=”off”][et_pb_column type=”4_4″ _builder_version=”4.5.3″ custom_padding=”0px||0px|0px|false|false”][et_pb_text _builder_version=”4.7.3″ _module_preset=”default” header_font=”Open Sans|800|||||||” header_text_align=”center” header_text_color=”#FFFFFF” header_font_size_tablet=”” header_font_size_phone=”24px” header_font_size_last_edited=”on|phone”]
Upcoming Event
[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=”1″ fullwidth=”on” disabled_on=”on|on|on” _builder_version=”4.8.1″ _module_preset=”default” disabled=”on”][et_pb_fullwidth_image src=”https://lightpink-wombat-703347.hostingersite.com/wp-content/uploads/2020/11/IIM-C-Creatives-.png” title_text=”IIM C Creatives” url=”https://lightpink-wombat-703347.hostingersite.com/fx-risk-management-for-indian-exporters-certification-programme/” _builder_version=”4.7.3″ _module_preset=”default” locked=”off”][/et_pb_fullwidth_image][/et_pb_section]