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Name
Foreign Exchange Swap
Introduction
Foreign exchange swap refers to a foreign exchange forward deal in which Bank of China Rotterdam Branch makes spot deal of a pair of currencies while making forward deal of the same pair of currencies on behalf of customers to prevent the exchange rate / interest rate risks of relevant currencies. It means that, a swap transaction composes of a spot deal and a forward deal.
Features
1. The combination of foreign exchange spot and forward deals can lock up the exchange rate /interest rate risks, enabling customers to match the future cash flow of assets / liabilities in both currencies to meet the operational needs with the market risks under control.
2. Available currencies include: EUR, USD, HKD, GBP and other convertible currencies.
Interest Rate
The interest rate is linked to market interest rate based on the inter-bank lending rate.(LIBOR)
Term
Bank of China provides standard or non-standard foreign exchange swap quotation within one year, and makes foreign exchange swap deals longer than one year as requested by the customers.
Margin
Customers shall pay certain proportion of margin according to Bank of China's rules on capital business.
Target Customers
Customers who have accounts with Bank of China and want to hedge against the future cash flow risks arising from two foreign currencies.
Our Advantages
Bank of China's foreign exchange swap business can offer the quotation not only for customers but for banks as well.
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