Forward points and Gender and diversity finance: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
(Create page - source - BII - ''Finance - diversity - equity - equality - gender equality.'' Gender finance is an approach to investing that takes explicit account of the effect of the investment in promoting gender balance and diversity. ==See also== *)
 
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Forward points (for example one month forward points of 5-8) are a conventional short-form method of quoting forward foreign exchange (FX) rates, by reference to the related foreign exchange spot quote.
''Finance - diversity - equity - equality - gender equality.''


The spot foreign exchange quote is adjusted by applying, for example, the one-month forward points to it, to calculate the full one month forward foreign exchange quote.
Gender finance is an approach to investing that takes explicit account of the effect of the investment in promoting gender balance and diversity.




<span style="color:#4B0082">'''Example: Full forward quote calculation'''</span>
==See also==
* [[British International Investment]]  (BII)
* [[Diversity]]
* [[Equality]]
* [[Gender bond]]
* [[Gender finance]]
* [[Gender pay gap]]
* [[Global bond]]
* [[Green bond]]
* [[Inclusion]]
* [[International Finance Corporation]]  (IFC)
* [[Social bond]]
* [[Social impact bond]]
* [[Sustainability]]
* [[Sustainability bond]]
* [[Sustainability bond framework]]
* [[Sustainability Bond Guidelines]]
* [[Sustainability-linked bond ]]
* [[Sustainability linked bond framework]]
* [[Sustainability linked loan]]
* [[Sustainability Linked Loan Principles]]
* [[Sustainable bond]]
* [[Sustainable bond framework]]
* [[Sustainable debt]]
* [[Sustainable finance]]
* [[Thematic bond]]
* [[2X Global]]
* [[Use of proceeds bond]]


If the spot foreign exchange quote is:


GBP 1 = 1.6000 - 1.6010 USD
==Other resources==
 
*[https://www.ifc.org/wps/wcm/connect/publications_ext_content/ifc_external_publication_site/publications_listing_page/sustainable-bonds-to-bridge-the-gender-gap Bonds to Bridge the Gender Gap: A Practitioner’s Guide to Using Sustainable Debt for Gender Equality - International Finance Corporation - 2021]
 
*[https://assets.bii.co.uk/wp-content/uploads/2022/02/02182247/Gender-and-Diversity-Finance-Position-Statement-2022-26-1.pdf Gender and Diversity Finance Position Statement - British International Investment - Investing for Inclusion 2022-26]
And if one-month forward points are 5-8 (rising).
 
 
Then the one-month forward exchange quote is calculated by adding the forward points as follows:  
 
1.6000 + 0.0005
 
= 1.6005 USD
 
1.6010 + 0.0008
 
= 1.6018 USD
 
 
The full forward quote (bid-offer) is:
 
GBP 1 = 1.6005 - 1.6018 USD.
 
 
''It is also often possible for a customer to construct a forward FX contract, by dealing separately in the spot FX contract and the swap points.''
 
 
== See also ==
* [[Forward contract]]
* [[Foreign exchange]]
* [[Forward foreign exchange rate]]
* [[Spot rate]]
* [[Swap points]]


[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 13:36, 4 January 2023