Currency forward: cancelled or delayed order
Notify your currency provider promptly and ask for written options before the settlement date. Do not assume an order cancellation releases the forward commitment. Compare quoted amendment or close-out costs with settling and holding the currency. Confirm the revised supplier payment plan with Cambridge China Bridge.
Notify the provider as soon as the order changes
Contact the bank or currency provider that booked the forward. Send the contract reference, currencies, outstanding amount, settlement date and whether the order is cancelled, reduced or delayed. Explain what is confirmed and what remains uncertain. Ask for acknowledgement and the deadline for giving instructions.
For a delay, establish the revised supplier payment date rather than using the expected delivery date. Use the factory delay guide to establish production status. Give the provider a realistic payment window and say clearly if the factory has not confirmed it.
Check the currency commitment separately
A forward commits you to buy the agreed currency at the agreed price. HMRC's guidance describes this obligation even when the spot price would be cheaper. Treat the purchase order and currency contract as separate commitments: do not assume that cancelling the goods also cancels the forward.
Read your booking confirmation and provider terms. Ask what remains payable, when cleared funds must arrive and whether any outstanding collateral request still applies. Keep funding available against the existing instructions until the provider confirms an agreed change. The forward contract guide covers the underlying arrangement.
Request comparable written quotes
Ask the provider to quote the options relevant to your order: changing the settlement date, reducing the outstanding amount, closing out the contract, or settling as booked and holding the currency. Ask which options your contract permits. HMRC describes cases where parties agree cash settlement instead of delivery; ask whether your provider will agree this.
For each quote, request the total amount payable or receivable, its currency, the payment date and quote expiry. Ask the provider to distinguish market loss or gain, amendment charges, its exchange-rate spread and any collateral adjustment. For an extension, request the revised rate, amount and date. Do not assume an extension preserves the original rate or that close-out costs only an administration fee.
Choose against the remaining payment need
For a delayed order, compare the quoted extension with the cash needed to settle now and hold currency until the supplier is paid. Ask about account charges and access to the funds. If the payment date remains uncertain, ask what happens if it changes again before accepting an amendment.
For a cancelled or reduced order, identify whether there is another confirmed payment in the same currency. Avoid assigning the forward to a speculative future purchase just to postpone the decision. Handle the goods cancellation through the order cancellation guide, and compare the currency options using your actual cash position.
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Confirm execution and update the cash plan
Separate a request for a quote from authority to execute it. Once approved internally, send clear instructions through the provider's agreed channel. Obtain an amendment or close-out confirmation showing the contract reference, remaining currency amount, rate where applicable, payment obligations and dates. Reconcile any collateral retained, applied or returned.
Update your order cash-flow calendar and give the supplier only the payment instructions you have approved. Keep the original confirmation, quotes, approval, execution record and settlement evidence together. Cambridge China Bridge's China staff can help establish factory milestones for orders we manage; obtain the currency contract decision and confirmation from your provider.
Frequently asked questions
Does cancelling my order cancel the currency forward?
Do not assume so. The forward is a currency commitment. Contact the provider, check your terms and obtain written confirmation of any amendment or close-out.
Can I extend a forward if the factory is late?
Ask your provider whether your contract permits an extension. Request the revised rate, amount, date and total cost before authorising it.
What should a forward close-out quote show?
The net amount payable or receivable, currency, payment date and quote expiry, with market loss or gain, provider charges and collateral treatment explained.
Should I settle and hold the currency instead?
Compare the cash needed, account charges and access to the currency with the provider's amendment or close-out quote. Base the decision on confirmed future payments.