Standard Bank launches new financial products in the market
Standard Bank has just introduced in the domestic market two innovative financial products, namely “FX option” and “Contract for Exchange”, with the aim to cover the risk of the exchange rate for importers and exporters who have investments in national or foreign currency, in addition to operators who hold different currency liabilities of its revenues.
The products were introduced to the market, particularly for importers of goods and services during the Standard Bank Foreign Exchange Market Forum, held in Maputo on Wednesday (November 14).
The event also served to reflect on recent developments regarding the economic volatility of the exchange rate and the performance of metical against major currencies as well as on how importing businesses can protect themselves against currency fluctuations, using various products to mitigate risk that Standard Bank has to offer.
Carlos Madeira, Head of Global Markets at Standard Bank,said that “the intention of the Bank is, in conjunction with customers, to provide a solution to the current problems, in order to contain the exchange risk that the market offers”.
“We brought to this Forum two innovative products, one of which is the ‘FX option’, which gives the customer the right but not the obligation to buy or sell currency at a preset price at a fixed date also, in the future, against payment of a premium value on the date of the operation”, said Carlos Madeira.
He further explained that it is “an innovative product in the Mozambican market, in a scenario in which current exchange rates are volatile, sometimes they are favorable and other times unfavorable to the business of our clients”.
With regards to the “Contract for Exchange”, Carlos Madeira said it has been “designed for our clients and the entire business community, on the one hand, it has liabilities in foreign currency, while its economic business generates revenues in local currency”.