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Currency forward contracts are agreements between two parties to exchange a fixed amount of one currency for another at a future date. The exchange rate is predetermined when the contract is signed. There are outright forwards and non-deliverable forwards. Outright forwards involve the actual exchange of currencies, while non-deliverable forwards are settled in a single currency like the US dollar. These contracts can be used for speculation or risk management. An example is a US technology company expecting a payment of 10 million British pounds in 90 days, with a current spot rate of $1.60 per pound.