Product Name

Foreign Exchange Swap

Product Descriptions

Foreign Exchange Swap refers to currently buying one currency and selling another currency while forward re-selling the bought currency and buying another one currency. A Foreign Exchange Swap transaction composes of a spot deal and a forward deal.

Product Features

The combination of foreign exchange spot and forward deals can lock up the foreign exchange rate risk, which enable customers match up, with no need to bear risk of foreign exchange rate changes, the cash flows of assets in two foreign currencies to satisfy corporate demands.

Target Customers

Corporate clients with foreign exchange income and expenditure

Process

1.Account opening: Clients need to open accounts (current account and margin account) with Bank of China

2.Agreement signing: Before conducting the transaction of Foreign Exchange Swap with Bank of China, clients need to sign the FX forward agreement.

3.Deposit implementation: clients are required to provide a certain amount of margin deposit or have the corresponding credit limit deducted by our bank.

4.Transaction application: Clients provide the Foreign Exchange Forward transaction details in the form of written application.

5.Completion of transaction: Once the transaction is confirmed, Bank of China shall provide transaction confirmation to clients in written form.

6.Settlement: After the transaction, both the customer and the bank will physically settle on pre-determined settlement date.