FINANCIAL PLANNING
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WEALTH MANAGEMENT PRODUCTS
BAIDURI TWIN CURRENCY DEPOSIT

GETTING STARTED

Attractive returns within your reach with just a few simple steps

Step 1
  • Choose a pair of currencies
  • Australian Dollar (AUD), Pound Sterling (GBP) and New Zealand Dollar (NZD)
  • One will be the Base Currency in which your deposit will be denominated, the other your Alternate Currency
Step 2
  • Decide on your investment amount (principal)
  • The standard tenure for deposit below BND100,000 is one month
  • Option of 1 to 2 weeks tenure is available for deposit of BND100,000 and above
Step 3
  • Choose the interbank rate between two currencies (the pre-agreed interbank rate or strike rate) based on your views on foreign exchange movements
  • The interbank rate for the base currency will also be fixed
Step 4
  • You will receive your principal plus yield in the Base or Alternate currency depending on whether the pre-agreed interbank rate or strike rate is reached on the fixing date i.e. two business days before maturity and the interbank rate for the base currency will also be fixed
  • The pre-agreed interbank rate will apply should your principal and yield be converted into the Alternate Currency

Note: Minimum deposit of BND25,000

How It Works

You place BND 100,000 in a 2 weeks Twin Currency Deposit.
You choose AUD as the Alternative Currency as you are indifferent to holding either currency.

The hypothetical scenarios above are meant for illustrative purposes only. The scenarios shown above have no reference to historical data and are not actual or indicative of future performance.

Plan The Smart Way

Your choice of currencies, timing and investment preference are crucial. Consider investing in BTCD when:

  • You are comfortable with holding either the Base Currency or the Alternate Currency
  • You have potential use of the Alternate Currency e.g. for your children studying abroad or business dealings overseas
  • You need to hold on to a particular currency that is weakening. By choosing this currency as your Base, you can maximize the likelihood of receiving your proceeds back in the same currency plus enjoying higher yield

If you need to buy the alternate currency at a more desirable level, you can enter into a BTCD. Place the strike at the desired level to buy the alternate currency, and if the strike price is reached at the fixing date and time, you would enjoy;

  • Buying the alternate currency at a lower interbank rate; and
  • Enjoy higher deposit yield for the period

What To Do When Strike Price Is Reached

There are a few options you can take;

  • Place a new BTCD using the Alternate as your Base to strike back
  • Place the Alternate Currency in a Foreign Currency Fixed Deposit Account which offers high yield
  • Place the Alternate Currency in a Foreign Currency Savings Account if you prefer greater flexibility or while still exploring other investment options

Important note:

  • In BTCD the principal and yield is payable in either the:
    • Base Currency or
    • Alternate Currency
  • You may be subject to risks associated with interbank rate fluctuations and interbank rate controls
  • Should you receive the principal and yield in the Alternate Currency and wish to immediately convert your proceeds back to your Base Currency at the prevailing interbank rate, the amount your receive may be less than the original deposit amount
  • BTCD is intended to be held to maturity
  • Partial withdrawal of the principal is strictly not allowed for this product
  • You should carefully consider whether this product is suitable for you in light of your investment goals, financial needs and risk profile
  • All rates and figures that appear here are for illustrative purposes only
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