Dealings in Derivative products

The bank deals in simple derivatives with customers to enable them hedge their expected income streams against adverse changes in foreign exchange rates in both local and foreign markets. The underlying assets upon which a hedge is developed may be either in pure currencies or commodity prices and the bank uses such instruments as swaps, forward contracts and options to institute the hedge. Customers and most specifically, large corporate entities (importers & exporters) and farmers may utilize the opportunities a vailable at the bank to plan and protect their projected cash flows using any of the instruments stated above.

Related to the above products is Kinga Ya Bei or KYB, which means price risk management product, introduced by CRDB bank in partnership with the Commodity Risk Management Group (CRMG) of the World Bank in 2004. KYB offers an opportunity for farmers through the cooperative societies and exporters to hedge the price of their physical products through the world financial markets.

For further information please call our Treasury department on +255 22 2110768 or +255 22 2114836 or our Relationship Managers on +255 22 2111948 or visit your nearest CRDB Bank branches.