Dual Currency Investment is a short-term investment that provides investment opportunities in multiple currencies of your choice. With Dual Currency Investment, the principal sum and interests are repayable in the base currency (the currency in which the investment was made) or the alternate currency (nominated alternate currency), at a preselected foreign exchange (“Strike”) rate.

How does a Dual Currency Investment work?
Step 1
Choose a pair of currencies from our wide range of major currencies. One will be your base currency and the other will be the alternate currency.
Step 2
Decide on the investment amount and which of the two chosen currencies to place your investment amount in.
Step 3
Decide on a tenure period (ranging from 2 weeks to 12 months).
Step 4
Agree on the strike price for your currency pair.

Key Benefits

Features

Features Description
Minimum Investment USD 25,000 or equivalent
Choice of currencies EUR, GBP, AUD, NZD, USD, CAD, CHF, JPY, SGD, HKD, CNH
Choice of Tenure 1 week – 6 months
Withdrawal Break costs may be incurred if the investment (or any part thereof) is withdrawn prior to maturity. A Dual Currency Investment is not transferable, or negotiable.

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)

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) calculated as follows.

  • 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

Key Risks

Important note:

Dual Currency Investment are investments where the principal sum and interest, are repayable in either the base currency or the alternate currency. By purchasing a Dual Currency Investment, 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. 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. Dual Currency Investment 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. 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 Investment. 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 Dual Currency Investment 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. 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. 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. 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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