Foreign Exchange Facility Guarantee
EDC's Foreign Exchange Facility Guarantee (FXG) supports Canadian companies that purchase foreign exchange contracts to protect against currency fluctuations. On foreign exchange contracts of up to three years in duration, EDC can help by providing an FXG to the financial institution which replaces the collateral required by a financial institution to be posted by the Canadian company.Business Benefits
- Free up working capital: In some cases, EDC can replace up to 30 per cent of your facility, freeing up even more working capital.
- Support for all forms of derivatives: FXG can cover any form of derivative that you use to offset foreign currency exchange risk; e.g. forward contracts, options, etc.
- Solid balance sheet: With FXG, you can accurately budget revenues and costs, better manage cash flow, and protect your balance sheet.
- Confidence to pay suppliers upfront: You can pay suppliers without fear of losing money due to currency fluctuations by using a foreign exchange contract.
- Business growth: With access to more cash, you gain the ability to take on more business.
EDC guarantees the collateral amount, giving your financial institution the necessary security and freeing up working capital for your business.
Qualification Criteria
EDC reviews your company's managerial, technical and financial capabilities and assesses your relationship with your financial institution.
Cost
Pricing is based on several factors including exporter risks and forward contract-specific factors.
More information
Call 1-866-283-2957, weekdays between 8 a.m. to 6 p.m. EST.
Request more information
FXG Brochure (PDF Format)
Checklist for EDC's FXG Support (PDF Format)
FXG Application Form (PDF Format)
Important Information
The foregoing information describes, in general, the foreign exchange facility guarantee available at EDC and is not a commitment to provide such coverage. Only the FXG policy documentation provides the full extent, nature and specific characteristics of the coverage.
