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Currency forwards are also called foreign currency forward contracts. They are basically an agreement that obligates its parties to exchange given quantities of currencies at a specified exchange rate in the future. The rate is normally assigned at the time the contract is agreed to, and usually requires a deposit to be given.
I am going to go through an example process. The date the deposit and contract are initiated will be Jan 1st. The Agreement is to purchase $200,000 on Feb 1st. The advance to the supplier will happen on or after Feb 1st.