ERA

From Reuters Financial Glossary

Synonym: Exchange Rate Agreement

This is a foreign exchange derivative contract based on a synthetic or constructed forward contract in which settlement is based on the difference between two foreign exchange forward rates and not the spot rate. In contrast, a standard forward exchange agreement or FXA is based on the difference between the forward rate on the start date of the contract and the spot rate at settlement.

See also: Derivative, Forwards, FXA, Spot