We offer a wide range of products to corporates and financial institutions in foreign exchange and interest rate hedging to manage their generic risk emanating from the volatility in the financial markets and also are market maker in GCC and emerging market bonds.

Forward FX:

We provide end to end hedging solutions in G7 currencies and GCC currencies using outright forward contracts  for tenor up to 18 months.  Outright forward is one of the most preferred solutions used by corporates to hedge their future FX exposure that has been identified and expected to be delivered on a future date. The outright forward contract gives very good opportunity for the corporates to hedge a future exposure taking the advantage of favorable spot rate.

Currency Options:

We also provide hedging solutions to corporates using vanilla currency options in G7 currencies.  Currency options provides unlimited upside in hedging while capping the downside to the strike price agreed while entering the contract.However, for seeking this benefit, customers will have to pay an upfront premium that would be determined based on market conditions prevailing when executing the deal.

Structured FX Solutions:

We also offer customers structured FX solutions in G7 currencies using a combination of both forward and currency options to bring effectiveness to the hedging program. We would work very closely with the customer and help them develop effective solutions based on the market view and breakeven cost identified by the customer for a business cycle. 

Interest rate swaps:

We do provide interest rate hedging solutions in USD by way of Interest rate swaps.  Interest rates Swaps offer effective hedging solutions to protect for rising or falling interest rates for floating and fixed rate loans respectively.

Repo:

We also provide funding to banks and customers by way of Repo. Repo is a generic name for both repurchase transactions and buy/sell-backs. In a repo transaction, a bank or a customer sells an asset (usually fixed-income securities) to BOJ at one price and commits to repurchase the same at a different price at a future date. The difference between the price paid at the start of a repo and the price received on the future date is the return on the cash that BOJ has effectively lent to the customer or bank.

Fixed Income Products:

We are market makers in GCC and other emerging market bonds and would be able to offer competitive pricing for Sovereigns, Quasi Sovereign (GRE), financial Institutional  and Corporate bonds.

For more information, please contact your Relationship manager, or contact Bahrain Treasury directly on: treasurybahrain@bankofjordan.com.jo