FX and Cash management

Dual Currency Investment

Dual Currency Investments are investment products with currency options. It offers not only deposit interest, but also an enhanced interest derived from the currency option - allowing potentially high interest returns on foreign exchange.

Choose a currency as the base currency and another as an alternative (the currency that you can access and willing to hold). After you choose the currency pair, total yield and rate trigger will be determined by product terms, including investment tenor, agreed exchange rate, etc.

Features

  • Determine your yield expectations based on your foreign exchange market trends and risk tolerance views.
  • Dual Currency Investments lowers your FX risk by providing minimum payment of fixed percentage of invested capital and yield in base currency at maturity. 
  • Investment tenors are short; choose tenors between one week and three months.  Determine the tenor based on your needs.
  • We have 10 choices of currencies to choose from:  USD, HKD, GBP, AUD, CAD, SGD, CHF, JPY, NZD, and EUR, to help you meet your needs and capture greater yield opportunities in the foreign exchange market.
    The minimum notional amount is low and the minimum investment is USD20,000 without subscription fees and offering deadline.

How to Apply:

  • Visit any of our branches or contact our Treasures Relationship Manager.
  • Call our 24-hour personal banking service hotline at 0809-002889 or 02-66129888

Risk Disclosure

  1. Dual Currency Investments are a complex investment instrument involving FX options, which require personal explanation for an investment decision. It is advisable for you read the product description and risk disclosure statement carefully, assess the product independently and take on the possible risk of loss. Product information and terms provided by the Bank does not constitute as an offer to sell or the solicitation of an offer to purchase any investment. You shall refer to related documents, including the transaction confirmation letter, product description, risk disclosure statement and general agreement of account, for product details and related rights.
  2. This structured product is linked to an FX option. Therefore the risks you are exposed to include the underlying investment risk, foreign exchange risk, liquidity risk, early termination risk, reinvestment risk, credit risk, country risk, tax risk, legal risk and other potential risks.
  3. Your risk exposure of structured products varies with product design or terms. For example, in the case of cash delivery, you are exposed to the risk of losing part or all of the interest, less principal or other losses. For non-cash delivery, however, your capital may have to be converted to underlying asset according to the agreement and may be exposed to credit risk of the bank and issuer of the underlying asset (if any).
  4. The price fluctuation of financial derivatives is affected by multiple factors, while the risks described in the Risk Disclosure Statement are major risks and may not cover details of all transaction risks and market price factors. Therefore, you should fully understand the nature of structured products and related financial, accounting, taxation and regulatory information before you enter into a transaction. You should also evaluate your financial condition and risk tolerance before investment decision is made (you shall evaluate your financial condition and risk tolerance after consulting your advisor if you find such consultation necessary).

The risks described below are the major risks of this investment. Please refer to the section of major risk disclosure in the Dual Currency Investments document.

The worst case scenario is to lose all capital invested

The product is an investment, not a deposit; you shall take on market and credit risks of this product. In the worst case scenario, you will not acquire any gains and will lose original principal when the Bank is not able to fulfil the product obligation.

Underlying instrument risk and Foreign Exchange Risk

You will be exposed to the risk of foreign exchange market fluctuations, which might affect the investment return. You shall intend to hold alternative currency at maturity. The income might be significantly less than the principal if it is converted to base currency. In the worst case scenario, the principal and return is exposed to the risk of losing up to 30% of the capital invested if the alternative currency greatly depreciates against the base currency.

Liquidity Risk, Early Termination Risk and Reinvestment Risk

You shall intend to hold this investment to the maturity and shall not redeem or terminate Dual Currency Investment before maturity. In addition, you shall not collect part or all of the principal or any amount of your investment before maturity. Given the validity of this precondition, the Bank may agree to terminate the product before maturity based on the terms acknowledged and approved by the Bank.

You shall notice that the payment of the Bank for early termination under such circumstance may be significantly less than the principal invested. You shall also be liable for all losses and damages of the Bank incurred by early termination, including but not limited to all kinds of costs, expenses, service fees or default penalties due to market price fluctuations.

You may lose some of your original investment for early termination (in the worst case scenario, you may loss all of your original investment ) or such termination is not possible in the first place.

If you desire to terminate your Dual Currency Investment before the maturity date, you shall take on the risk of losing part of your original investment and reinvestment risk.

Credit Risk

This Product is an investment and is excluded from coverage of deposit insurance. You shall take on credit risk of the Bank. In the worst case scenario, you may loss your principal, interest and enhanced gain if the Bank defaults.

Taxation Risk:

Dual Currency Investment gains are subject to tax withholding according to related tax regulations and the regulatory authority’s orders.

If the aforementioned tax regulations are amended, your gains might be less than you expected when you invested.

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