1. Spot Exchange
2. Forward exchange
3. Foreign currency options
Spot exchange
Target customers
- Individuals demand to sell foreign currency
- Individuals have to pay expenses for going on overseas business, studying, medical treatment, traveling abroad, succession, oversea residence and other current demand for payment in foreign currency.
Product features
- Flexibility to choose the currency, amount and method of payment.
- Choice of payment date: today/ tomorrow/ 2 days later
- Exchange rate: spot exchange rate at the time of trading
- Settlement date: maximum of 2 following working days after trade date.
Required documents
- Documents certifying purposes of using foreign currency (customers desire to buy foreign currency)
- Other required documents complying with foreign exchange management regulations of the State Bank
- Request for foreign exchange (customers desire to buy foreign currency)
- List of currency to sell to the bank (customers desire to sell foreign currency)
Forward exchange
Target customers
- Individuals demand to sell foreign currency
- Individuals have to pay expenses for going on overseas business, studying, medical treatment, traveling abroad, succession, oversea residence and other current demand for payment in foreign currency.
Product features
- Meet the demand for foreign currency planned in the future.
- Flexibility to choose the currency, amount and method of payment
- Hedge exchange rate risk.
- Foresee effectiveness of business scheme.
- Forward rate is determined at the trade date.
- Settlement date: 3 to 365 days from the contract date.
Required documents
- Documents certifying purposes of using foreign currency (customers desire to buy foreign currency)
- Other required documents complying with foreign exchange management regulations of the State Bank.
Foreign currency options
Target customers: who desire to buy/sell call/put options on foreign currency.
Product features
- Hedge exchange rate risk for customers.
- Fix maximum cost when buying foreign currency and minimum profit when selling foreign currency.
- Customers can choose desired exchange rate.
- Increase profit when exchange rate changes in favorable directions.
- Customers have to pay premium to buy options (call/put)
- Exchange rate, currency, amount, exercised date are determined at the contract date.
- Choose European style options or American style options.
Fee
- Customers have to pay premium to buy call/put options (option price) at the contract time.
Usage guidance
- Prepare and sign a contract framework
- Prepare and sign an option contract
- Prepare “Notice of option exercise” when customers exercise options.
