Forex & Derivatives

In less than three decades of their coming into vogue, derivative markets have become an extremely important component of financial markets the world over, and are growing tremendously everyday. Derivatives have evolved as a low-cost, effective method for users to hedge and manage their exposures to interest rates, commodity prices, or exchange rates. Over time, as financial markets have developed, derivatives have assumed the role of effective risk-management tools for the market participants, while also helping in substantially reducing their cost of debts. By providing investors and issuers with a wider array of tools for managing risks and raising capital, derivatives improve the allocation of credit and the sharing of risk in the global economy, lowering the cost of capital formation and stimulating economic growth.

The total exports and imports of the Indian agri-business exceed USD 23.00 billion annually. The market experience in the segment indicates that forward contracts and derivatives as risk hedging instruments are growing products and are offering immense benefits beyond just the conventional banking products.

At ICICI Bank, we have one of the largest and most experienced treasuries across the financial markets' landscape, with experience in dealing with all currencies across the world. Our extremely experienced team of analysts, advisors, and solution managers offer advisory services and solutions over an entire gamut for clients to hedge their risks and lower their costs, thereby helping them develop their business better.

In our endeavour to provide financial solutions at every stage of an agri-business value chain, Agri-SME caters to a host of exporters and importers. We offer products that not only help our clients who have any kind of forex exposure by way of exports or imports to protect their exposure against market fluctuations, but also substantially reduce the cost of debt and leverage upon income earning potential through customised derivative structures. Rapid Forex is one such facility, which will help our clients to hedge their flows and also to reduce their cost of debt. Under the program, forex and derivatives facilities would be sanctioned to specific borrowers who meet certain predefined eligibility criteria.