Product Name

Foreign Exchange Forward Deal

Product Description

Foreign exchange forward deal refers to the bank represents the clients to buy or sell currencies at a future date at a predetermined price. The settlement date of the transaction will be more than 2 trading days. We normally offer foreign exchange forward deal with settlement no more than one year.

Features

1.Client requests the bank to buy one currency and selling another currency with the delivery date and pre-determined exchange rate specified in the contract. This contract is intended for clients who want to lock in future exchange rate, avoiding losses due to exchange rate fluctuations..

2.This product implements a direct quotation without intermediate conversion through second currency (e.g. CNY) reducing the transaction cost for the customers.

3.We can provide foreign exchange trading for most of the currencies, in particular expertised in offshore RMB products.

Eligible Applicants

1.It can meet the customer's demand for transactions among foreign currencies some day in the future, to company's settlement of import and export trade, to the payment of L/C margin and so on.

2.Customers are required to open foreign currency accounts at Bank of China.

Application Requirements

1.A specified trading period less than one year and more than two banking days is determined according to customers' demands.

2.Applicant is required to deposit a certain amount of margin, or there should be credit line to be deducted.

Procedure

1.Sign agreements: Before a forward foreign exchange transaction is carried out, the applicant is required to sign necessary agreements with Bank of China.

2.Pay margin: applicant shall deposit cash in proportion or apply credit line as margin.

3.Quotation: the applicant submit a written authorization to establish the details of foreign exchange forward deals.

4.Deal confirmation: after concluding the transaction, Bank of China will deliver the transaction confirmation to the applicant in written form.

5.Settlement: the actual settlement shall take place on the delivery date. The applicants may require the bank to unwind the transaction or give the extension period to the transaction before the transaction day according to its needs.