Foreign Exchange Guarantee

Get Access to the Collateral You Need to Support Your Foreign Exchange Hedging Facilities

Export Development Canada’s (EDC) Foreign Exchange Guarantee is an irrevocable and unconditional 100% guarantee issued by EDC directly to RBC. It is intended to substitute or supplement the collateral you may need to pledge in support of your foreign exchange hedging facilities.

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Foreign Exchange Guarantee (FXG)

100% Guaranteed

The Foreign Exchange Guarantee covers 100% of your exposure, and is irrevocable and unconditional.

Covers Performance Risk

The guarantee includes coverage related to performance risk, such as performance, bid and advance payment Bank Instruments.

Direct Partnership with RBC

EDC does not share in the collateral security RBC may have, but stands behind us as an unsecured lender.

Fee Details

Pricing is based on EDC’s assessment of the risks associated with a customer and the nature of the business that they are in. Foreign Exchange Guarantee (FXG) fees are usually calculated using an EDC risk-based pricing grid and are expressed as a percentage rate, applied against the maximum aggregate liability of the FXG.

The Fee is payable in advance for the full duration of the FXG prior to coverage becoming effective. FXG fees are billed to RBC directly.