Dual currency investments

If you've got an appetite for higher returns*, then Dual Currency Investments (DCIs) may be the ideal wealth-building tool for you. DCIs are structured deposits where the principal sum and interest is repayable in the base currency (the currency in which the deposit is made) or alternate currency.

DCIs require you to invest a sum of money for a fixed tenure to earn higher returns*. Your investment returns are based on foreign exchange movements. By taking a relative view of how two currencies might move against each other, you may potentially earn higher returns* on your investments compared to time deposits.

How does it work?

Dual Currency Investments offer you higher returns compared to fixed deposits. However, the bank may deliver to you either your base currency or your alternate currency. This is determined by the trigger level agreed upon between you and the bank.

STEP 1
Choose a pair of currencies from our wide range of major currencies. One will be your base currency and the other your alternate currency.

STEP 2
Decide on your investment amount and which one of the two currencies you'd like to place your investment amount in.

STEP 3
Decide on your preferred tenure period from 2 weeks to 1, 2, 3, 6 and 12 months.

STEP 4
Agree on a trigger level on your currency pair.

You will be advised by the Bank two (2) business days before the maturity of your deposit, whether your principal and interest will be returned to you in the base or alternate currency.

The minimum investment amount (base currency) for Dual Currency Investments is

US$25,000 or its equivalent S$50,000 or its equivalent
Australian Dollar
Canadian Dollar
Euro
Japanese Yen
New Zealand Dollar
Sterling Pound
Swiss Franc
US Dollar		 Hong Kong Dollar
Singapore Dollar
 

Here's an example
You invest USD50,000 in a 1-month Dual Currency Investment and choose AUD as your alternate currency. The USD interest rate is set at 8% p.a., and the trigger level is agreed at 0.75 (assuming that the current market rate is 0.76)

Start Date : 12 April
End Date : 12 May
Tenure : 30 days

One of the following scenarios may take place and you will be advised two (2) business days before maturity that

Scenario 1
AUD/USD spot rate
above
agreed trigger level		 Scenario 2
AUD/USD spot rate
at or below
agreed trigger level
The amount you will receive
on maturity on 12 May in your
base currency will amount to
USD 50,333.33 (principal plus
interest).
Principal (P)
USD 50,000
Interest (I)
USD 50,000 × 8% × 30/360
= USD 333.33
Total
(P) + (I)
= USD 50,000 + USD 333.33
= USD 50,333.33		 The amount you will receive on maturity on 12 May in your alternate currency will amount to AUD 67,111.11 calculated as follows
USD 50,333.33 converted to AUD at the rate of 0.75
= USD 50,333.33 ÷ 0.75
= AUD 67,111.11

Note: The above example is for illustration purposes only and is not indicative of future or likely performance or return. Past performance of DCIs are also not necessarily indicative of future or likely performance or return.

For more information

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Important note

  1. Dual Currency Investment (DCIs) are investments where the principal sum and interest, are repayable in either the base currency or the alternate currency.
  2. By purchasing a DCI, you are giving the issuer of this product the right to repay you at a future date in an alternate currency that is different from the currency in which you initial investment was made, regardless of whether you wish to be repaid in this currency at that time.
  3. If you withdraw your investment before the maturity date, you may lose part of your return and/or principal. Any early termination costs such as administration costs, unwinding costs and other unforeseen costs will be deducted from your investment. No partial withdrawal of the principal is allowed.
  4. DCI are subject to foreign exchange fluctuations which may affect the return of your investment. In the event of being converted into alternate currency you may encounter loss of principal while getting converted back into the base currency. Exchange controls may also be applicable to the currencies your investment is linked to. You may incur a loss on your principal sum in comparison with the base amount initially invested.
  5. Foreign exchange controls may be imposed by the home country from time to time and may impact the value of the investment as well as delay or prevent the repayment of principal amount to you. You should always find out from your financial advisor if there are foreign exchange restrictions applicable to the currencies chosen by you before you decide to invest in Dual Currency Investments.
  6. This document is published for information only and does not take into consideration market conditions, specific investment objectives of any specific person who may receive this document. You should determine if a DCI fits with your financial goals, risk appetite and personal situation. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in this publication together with such independent investigation as you may consider necessary or appropriate for the purpose of such assessment.
  7. You may wish to seek advice from a licensed or an exempt financial adviser before making a commitment to purchase this product. In the event that you choose not to seek advice from a licensed or an exempt financial advisor, you should carefully consider if this product is suitable for you.
  8. Australia and New Zealand Banking Group Limited* reserves the right to make changes and corrections to the information in the brochure at any time, without notice. Australia and New Zealand Banking Group Limited* is the investment-accepting entity.
  9. None of the products mentioned herein are available or intended for any US person, citizen or resident. Neither this document, nor any copy thereof may be sent or taken into the United States or distributed in the United States or to a US Person.

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