Foreign Exchange Risk Insurance

Certainty of Currency

Atradius Dutch State Business offers you the option of insuring the currency risk during the quotation period for transactions with foreign buyers, which have to be settled in foreign currency.

Unlike a foreign exchange forward contract, you have no obligation to deliver or purchase foreign currency. Insurance is done in a way that Atradius Dutch State Business sets a guaranteed rate (forward rate) after which the exchange rate difference is settled after the contract takes effect. This works both ways: we reimburse you for exchange losses, and you pay us for exchange gains. In this way we can keep the premium lower than with unilateral options and you have certainty in advance about the amount in euros that your foreign currency contract will yield you at the time that the export contract is awarded to you. If the export export contract is not awarded to you, the insurance ends and there are no further obligations for you.