A forward foreign exchange contract is a contractual agreement betweenCitibank and a known counterpart to exchange a fixed amount of one currency for a fixed amount of another currency on a specific date in the future. The relationship between the two currency amounts is determined by the exchange rate; the date on which the contract is entered into (the trade date), and the date on which actual exchange (settlement) of the currency amounts takes place (the value date).

In the forward exchange contracts, the time table between the trade date and the value date is longer than a spot foreign exchange contract, specifically more than seven calendar days.