Exchange Risk Insurance 

Atradius Dutch State Business offers you coverage for exchange risk with foreign customers, for contracts in foreign currency, during the tender period.

An important advantage is that, unlike a currency forward contract, an obligation to purchase the foreign currency is not applicable. Insurance is provided in a manner whereby Atradius Dutch State Business issues a guarantee rate (forward rate) and after the entry into force of the contract, the rate difference is settled (exchange losses or gains). If the relevant export contract is not awarded to you, the insurance expires and there are no further obligations for you.

The 'standard' transferrable currencies (traditional industrialized countries) are eligible for insurance. These are: USD (US Dollar), CHF (Swiss franc), CAD (Canadian dollar), GBP (British pounds), AUD (Australian dollar), NZD ( New Zealand dollar), JPY (Japanese yen), NOK (Norwegian krone), SEK (Swedish krona) and DKK (Danish kroner).

Also some (so called) 'exotic currencies' can be insured. In this case you can think of currencies linked to euro or US dollar but also currencies of certain emerging markets with a relatively high level of development are insurable. On a case-by-case basis it can be considered if other exotic currencies are eligible for coverage. An important indication is the existence of a developed currency futures market where the forward rates are determined on the basis of interest rate differentials (covered interest parity). An exotic currency insurance is more expensive than a standard currency cover.

The premium consists of two parts: a fixed part and a variable part. The fixed premium is 0.5% of the sum insured to a maximum of EUR 125.000,--. The variable premium is 0.1667% per month of the insured sum. 1/20 of the fixed and variable premium is payable at the issuance of the insurance. The remainder is only charged if the contract is awarded to you and has entered into force.

The standard cover percentage for insurance is 100%, but the possibility exists to choose a deductible of 1% up to 2.5%. If you choose a deductible, the premium is obviously lower.

The insured period is maximized at 36 months.