EDC — Foreign Exchange Facility Guarantee
Last Update: July 29, 2025
Canada
Free up collateral held against your foreign exchange contracts
EDC — Foreign Exchange Facility Guarantee at a glance
Eligible Funding
- No Condition
Timeline
- Open Date : July 9, 2024
Financing Type
Other Support
Eligible Industries
- Manufacturing
Grant Providers
- Export Development Canada (EDC)
- Government of Canada
Program status
Open
Overview of the EDC — Foreign Exchange Facility Guarantee program
You can manage FX risk by implementing a sound foreign exchange hedging strategy, which your financial institution or other FX provider can help you establish. A Foreign Exchange Facility Guarantee can replace their collateral requirement and free up your
Financing terms and conditions
- Provides up to 100% coverage on your foreign exchange (FX) contract for collateral requirements, eliminating the need for additional collateral.
- Allows booking of FX contracts for up to three years.
Eligible projects & activities
- Securing foreign exchange contracts to manage currency fluctuation risk.
- Implementing foreign exchange hedging strategies to stabilize cash flow and profit margins.
- Accessing foreign exchange risk management tools to improve budget forecasting and financial planning.
- Freeing up working capital for operational needs or new business opportunities by replacing collateral requirements on FX contracts.
Examples of admissible projects:
$ 30,000
Implement sound foreign exchange hedging strategy for a tech startup
$ 55,000
Develop FX hedging strategy for a social economy enterprise
$ 25,000
Implement FX risk management for a nonprofit organization
$ 40,000
Establish FX hedging for a community development organization
$ 70,000
Mitigate foreign exchange risk for an import-export business
$ 50,000
Stabilize FX risk for an agricultural cooperative
Eligibility criteria of the EDC — Foreign Exchange Facility Guarantee program
- The applicant must be a registered Canadian company that meets EDC’s definition of an exporter.
- The business must have a banking relationship with a Canadian financial institution.
- The company must meet certain environmental, social, and governance standards, as well as other non-financial criteria set by EDC.
- The applicant must have, or be considering, a foreign exchange contract or other hedging instrument with their financial institution.
Who is eligible?
- Registered Canadian companies that are exporters
Eligible expenses
- Collateral requirements for foreign exchange (FX) contracts covered by the guarantee.
Eligible geographic areas
- Companies registered in Canada.
Eligibility criteria of the EDC — Foreign Exchange Facility Guarantee program
There are evaluation and selection criteria for this grant. The eligibility for the grant is based on the managerial, technical, and financial capabilities of your company, review of your foreign exchange hedging strategy, and the terms of your financial institution's foreign exchange facility agreement.
- Managerial, technical, and financial capabilities of your company
- Review of foreign exchange hedging strategy
- Terms of financial institution's foreign exchange facility agreement
How to apply to the EDC — Foreign Exchange Facility Guarantee program
1
Determine eligibility
- Assess your company's administrative, technical, and financial competencies.
- Review your company's currency risk management strategy.
- Evaluate the terms of your financial institution's foreign exchange facility agreement.
2
Acquire the guide
- Submit your professional email to receive the guide on optimizing foreign exchange risk coverage strategies.
- Agree to receive EDC's electronic newsletters, trade information, and promotional messages.
3
Read the guide and understand content
- Comprehend the various instruments for foreign exchange coverage.
- Learn how to develop a strategic coverage plan to protect and grow your business.
4
Contact EDC for personalized support
Reach out to EDC's contact number or email for further assistance in implementing a tailored strategy.
Additional information
- FXG enables access to more advanced foreign exchange hedging tools, including booking contracts for up to three years.
- This guarantee can increase a business's borrowing capacity and improve cash flow management by freeing up working capital.
- Locking in exchange rates with FXG can facilitate more accurate foreign exchange budget forecasting.
- EDC collaborates with your financial institution during the review and setup of the FXG.
Contact Export Development Canada (EDC)
example@edc.ca
1-800-229-0575
Apply to this program
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