Armenian Development Bank
Armenian Development Bank's children competition "Developing motherland in my imagination" On June 03 at 16:30 Armenian Development Bank OJSC summarized the results of the competition titled "Developing motherland in my imagination" and awarded ceremony participants dedicated to the International Children's Day.   Custodian services Armenian Development Bank since 11 March 2013 realizes all functions of the Account Operator and offers to sign/resign Custodian contracts of the owners' of nominal securities through ADB. ''Development'' loans Armenian Development Bank to stimulate business climate development offers legal entities and entrepreneurs a new type of loans that are ''Development'' loans. This type of loan is for those who are engaged or starting entrepreneurship.   Armenian Development Bank improved conditions of ''Instant'' consumer loans and card credit lines in foreign currency Committed to its principle to make more accessible loans products for the public, Armenian Development Bank improved conditions of the ''Instant''  consumer loans and card credit lines in foreign currency.   Armenian Development Bank awarded the winners of Young scientists conference. During the conference organized by the faculty of economics of YSU Chief Treasurer, also member of the Executive board Grigori Zakaryan awarded the best students for presenting reports on the topic ‘’Contemporary problems of economics’’.  

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03.06.2013
Armenian Development Bank's children competition "Developing motherland in my imagination" On June 03 at 16:30 Armenian Development Bank OJSC summarized the results of the competition titled "Developing motherland in my imagination" and awarded ceremony participants dedicated to the International Children's Day.  
07.05.2013
Custodian services Armenian Development Bank since 11 March 2013 realizes all functions of the Account Operator and offers to sign/resign Custodian contracts of the owners' of nominal securities through ADB.

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Address of the Armenian Development Bank OJSC, RA, Yerevan, 0015, 21/1 Paronyan str., Tel.: /37410/ 59 15 15, Fax: /37410/ 59 14 05, S.W.I.F.T. ARDEAM 22, e-mail address: info@armdb.com

Forwards, Options

Armenian Development Bank offers financial instruments to avoid foreign exchange risks. These give the clients opportunity to hedge themselves from foreign exchange rate fluctuations by fixing future exchange rates. The bank offers forward and option contracts for sale and purchase.

FORWARD TO BUY

Forward to buy ensures the client from foreign exchange rate rising. In case of conclusion the contract the client is obliged to buy from the bank the certain foreign currency (for example USD) after 15, 30, 60 or 90 days and the bank has to sell that currency by fixed rate in occasion of client's request. Hereby the client is not able to refuse to deal, if the exchange rate in the market is lower than the contract rate as of forward's date. The bank is not able to refuse to deal as well, if the exchange rate in the market is higher than the contract rate as of forward's date. The client has to keep at least 5% of forward's amount on his account as contract's collateral.

Example of Forward to buy

On 1 June, 2009 the client signs forward contract to buy with 1 September, 2009 value date. The principal amount of basis currency is 100,000 USD, the forward rate is 370 AMD=1$. This contract gives to the client an opportunity to buy 100,000 USD after 3 months by 370 AMD=1$ exchange rate. If at the day of transaction, i.e. 1 September, 2009 the market rate is 380 AMD then the client requests the bank to sell him 100,000 USD with the rate of 370 AMD. Without the forward contract the client needs to buy 100,000 USD from the market with the rate of 380 AMD =1$ by paying 38 million drams. In case of forward contract the client pays only 37 million drams. Thus forward contract gives him 1 million drams additional income. Client's income = (380 (market rate) -370 (forward rate)) * 100,000 (principal amount) =1,000,000 AMD

FORWARD TO SELL

Forward to sell ensures the client from foreign exchange rate reducing. In case of conclusion the contract the client is obliged to sell the bank the certain foreign currency (for example USD) after 15, 30, 60 or 90 days and the bank has to buy that currency by fixed rate in occasion of client's request. Hereby the client is not able to refuse to deal, if the exchange rate in the market is higher than the contract rate as of forward's date. The bank is not able to refuse to deal as well, if the exchange rate in the market is lower than the contract rate as of forward's date. The client has to keep at least 5% of forward's amount on his account as contract's collateral.

Example of Forward to sell

On 1 June, 2009 the client signs forward contract to sell with 1 September, 2009 value date. The principal amount of basis currency is 100,000 USD, the forward rate is 370 AMD=1$. This contract gives to the client an opportunity to sell 100,000 USD after 3 months by 370 AMD=1$ exchange rate. If at the day of transaction, i.e. 1 September, 2009 the market rate is 360 AMD then the client requests the bank to buy from him 100,000 USD with the rate of 370 AMD. Without the forward contract the client needs to sell 100,000 USD in the market with the rate of 360 AMD =1$ by receiving only 36 million drams. In case of forward contract the client receives 37 million drams. Thus forward contract gives him 1 million drams additional income. Client's income = (370 (forward rate) -360 (market rate)) * 100,000 (principal amount) =1,000,000 AMD

OPTION TO CALL

 Option to call ensures the client from foreign exchange rate rising. Buying this kind of option the client accrues a right to buy from the bank foreign currency (only USD and Euro) with the rate defined by the bank on the date of contract conclusion after 30,60,90 or 180 days. Meanwhile the bank is obliged to sell the client the certain foreign currency at his first request with the exchange rate mentioned in the contract. Hereby the client has a right to refuse to deal if the market rate is lower than the option rate as of option implementation date. The client pays to the bank fixed premium at the date of contract conclusion.

Example of Option to call

On 1 June, 2009 the client acquires an option to call by paying a premium to the bank (for example 450,000 drams) with 1 September, 2009 implementation date. The option's principal amount is 100,000 USD and the option price is 370 AMD=1$. The option contract gives to the client a right to buy 100,000 USD after 3 months by 370 AMD=1$ exchange rate. Suppose at the day of transaction, i.e. 1 September, 2009 the market exchange rate is 380 AMD then the client requests the bank to sell him 100,000 USD with the rate of 370 AMD. Without the option contract the client needs to buy 100,000 USD from the market with the rate of 380 AMD =1$ by paying 38 million drams. In case of option contract the client pays only 37 million drams. Thus forward contract gives him 550,000 drams additional income. Client's income = (380 (market rate) -370 (option rate)) * 100,000 (principal amount) - 450,000 (bank's premium) = 550,000 AMD

OPTION TO PUT

Option to call ensures the client from foreign exchange rate reducing. Buying this kind of option the client accrues a right to sell the bank foreign currency (only USD and Euro) with the rate defined by the bank on the date of contract conclusion after 30,60,90 or 180 days. Meanwhile the bank is obliged to buy from the client the certain foreign currency at his first request with the exchange rate mentioned in the contract. Hereby the client has a right to refuse to deal if the market rate is higher than the option rate as of option implementation date. The client pays to the bank fixed premium at the date of contract conclusion.

Example of Option to put

On 1 June, 2009 the client acquires an option to put by paying a premium to the bank (for example 450,000 drams) with 1 September, 2009 implementation date. The option's principal amount is 100,000 USD and the option price is 370 AMD=1$. The option contract gives to the client a right to sell 100,000 USD after 3 months by 370 AMD=1$ exchange rate. Suppose at the day of transaction, i.e. 1 September, 2009 the market exchange rate is 360 AMD then the client requests the bank to buy from him 100,000 USD with the rate of 370 AMD. Without the option contract the client needs to sell 100,000 USD in the market with the rate of 360 AMD =1$ by receiving only 36 million drams. In case of option contract the client receives 37 million drams. Thus forward contract gives him 550,000 drams additional income. Client's income = (370 (option rate) -360 (market rate)) * 100,000 (principal amount) - 450,000 (bank's premium) = 550,000 AMD


Updated: 02.02.2012 21:54


Exchange rates
19.06.2013, 15:08 Buy Sell
USD/AMD 408 411.5
GBP/AMD 631 645
EUR/AMD 545 552
CHF/AMD 437 448
RUB/AMD 12.52 12.87
GEL/AMD 240 260

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