Foreign Exchange Trade Insurance

You are a French exporter and your foreign buyer imposes a currency other than the euro to sign the contract. With Foreign Exchange Contract Insurance, you can set the forward exchange rate before signing the commercial contract or up to 15 days after signing

Foreign Exchange Trade Insurance

Presentation

Once negotiations are completed, Foreign Exchange Contract Insurance allows the company to set the forward rate of the currency in order to stabilise proceeds in that currency. The insurance thus neutralises foreign exchange risk.
Insured currencies: USD, GBP and CHF.
This insurance is designed for companies established in France and entering into a local-currency export contract (excluding international trade deals).

Benefits
Any foreign exchange losses recorded at the payment dates relative to the covered forward rate are fully covered.

How much?
The premium rate is based on the insured currency and the term of validity applied to the covered amount, invoiced in EUR. The premium is payable in full once the guaranteed forward rate is set.

 

About the Exchange risk insurance

In conducting Over The Counter trades, your buyer sometimes imposes an offer in a currency other than the euro to sign the contract. You are a French exporter and would like to avoid any foreign exchange risk. Bpifrance Assurance Export protects your local-currency exports by setting a fixed exchange rate.

Presentation

Exchange Rate Insurance meets your needs and is tailored to your transactions:

  • By protecting you against foreign exchange risk on offer prices denominated in a foreign currency thanks to the foreign exchange trade insurance,
  • By allowing you to finalise more advanced deals denominated in local currencies without incurring exchange rate risk against the euro thanks to the foreign exchange contract insurance,
  • By allowing you to secure your USD-denominated revenue in the aerospace sector thanks to the foreign exchange invoice payment flows insurance.

How it works?

On receiving an insurance request, we return a guaranteed forward rate proposal.
For Foreign Exchange Trade Insurance, French exporters may submit an insurance request as long as the deal is still being negotiated with the buyer.
For Foreign Exchange Contract Insurance, the insurance request may be submitted as soon as negotiations begin, and up to the 15th calendar day (inclusive) after the commercial contract is signed.
Bpifrance Assurance Export delivers a notification of approval to the company, setting forth the terms and conditions of cover.
Based on the payment schedule submitted by the French exporter, Bpifrance Assurance Export liquidates the covered term for the amount and at the date of each scheduled payment. If the liquidation results in a foreign exchange loss, the insurance entitles the French exporter to compensation. If, however, the liquidation results in a foreign exchange gain, the French exporter is required to return the amount of the foreign exchange gain to Bpifrance Assurance Export within 15 days of the payment date.

Documentation

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