A forward foreign exchange contract is an agreement between Citibank, N.A. El Salvador and a known counterpart to exchange a fixed amount of one currency for a fixed amount of another currency on a specific date in the future. There are two types of foreign exchange contracts, deliverable forwards and non-deliverable forwards (NDF).

• Deliverable Forwards: This type of contract requires that at maturity, both parties exchange the total amount of the currencies as agreed when the contract initiated.

• Non-Deliverable Forwards: This type of contract requires that at maturity only one party delivers funds representing the difference between the contracted forward exchange rate and the specified reference rate paid by one of the counterparts.