Treasury Products

NBC Treasury experts provide best advice and efficient way to help you manage exchange rate, interest rate and commodity price risks for all major currencies.

Exchange

Spot Foreign Exchange

The transaction of buying and selling of currencies, with two business days delivery following the dealing date.

At NBC, we deal with all major currencies – contact our friendly professional dealers for an up to date rates and to cover your foreign exchange exposure.

Foreign Exchange Forwards

The two parties agree to exchange one currency for another at a future date at a predetermined price.

Benefits


  • Corporations and individuals can hedge against negative impact of exchange rate fluctuations by agreeing with the bank in advance to lock in today’s exchange rate for future delivery.
  • With fixed exchanged rate, corporations and individuals are able to plan / project cash flow for accurate budgeting with more certainty.
  • Delivery dates are customised to suit your business needs - call us today!

Foreign Exchange Options

A contract that provides the buyer of the option the right but not the obligation to buy or sell one currency amount at a specified exchange rate on a specified date.

It acts as an insurance by allowing you to benefit from favourable exchange rate movements while protecting you from the effects of adverse movements.

It offers flexibility in that, an agreed fixed rate at future date can be used if rates move unfavourably (option is exercised) or you can use the prevailing spot rate for that date if exchange rates moves favourably.

The buyer of the option pays a premium at outset, which is non refundable regardless of wether the option is exercised. What is the available (minimum) amount?

The type of option offered by NBC is the Vanilla option.


Options

Who Option Favourable Benefit Exercise
Exporter Call option Depreciating TZS Receive more TZS from exchanging the foreign currency amount YES: if spot exchange rate is greater than strike rate (agreed rate)
Importer Put option Appreciating TZS Exchange less TZS to obtain foreign currency amount YES: if spot exchange rate is less than strike rate.

  • Exporter / Importer informs the bank the currency pair, strike rate, expiry date and face value amount.
  • American (before or after) or European (exercised at expiry date only) style options?

Risk Management Products

Products used in assessing and mitigating risks. RMPs can be offered in different structures such as Commodity derivatives, Interest rate derivates and foreign exchange derivates.

Spot Execution

Buying and selling of foreign currencies within two business days.

Forward Exchange Contract

Agreements to buy or sell currencies at the rate agreed today for future delivery. It locks in a fixed foreign exchange rate at no upfront cost.

 

NBC deals with all major currencies, please contact our friendly professional dealers for an up to date rates and to cover your foreign exchange exposure.

Contact numbers:
Telephone:
+255 763 980 500, +255 222 199 794;