The forward rate agreement is one of the most widely used financial instruments in the financial world. It is concluded between two over-the-counter counterparties. A fra or forward rate agreement is a financial instrument that is practiced on the money market. It is a futures contract or derivative whose interest for the investor is to secure the future interest rate. The FRA is negotiated between two over-the-counter (OTC) trading partners. . Agreement between the European Community and the Republic of South Africa on the wine trade. The agreement on future rates is that the buyer pays a fixed interest rate agreed on the day the FRA is signed. For the seller, this agreement involves paying the rate that will prevail on the due date.
As the payment is made at the end of a given period, the difference between the value rate and the maturity interest rate will be made in favour of one of the two counterparties. The buyer receives the payment if the rate is higher than the rate agreed at the time of signing. Conversely, the seller receives money if the tax rate is lower than the original rate. In either case, the principle is above that the original rate remains unchanged and guaranteed. Agreement on measures to discourage trade in counterfeit goods between the governments of the States of the Benelux Economic Union, the Federal Republic of Germany and the French Republic on the phasing out of common border controls. Future interest rate agreement The FRA makes sure the specified rate remains the same. The FRA allows the expected rate to remain unchanged. Agreement amending the fourth acp-EC convention of Lomé Agreement between the twelve Member States of the European Communities on the simplification and modernization of procedures for transmitting extradition requests intergovernmental agreement on the financing of the budget.