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| BAIDURI TWIN CURRENCY DEPOSIT |
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| Attractive returns within your reach |
| With a minimum deposit of BND25,000 you can start investing in Baiduri Twin Currency in a few simple steps: |
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| STEP 1: Choose a pair of currencies that include Brunei Dollar (BND) and any of three major currencies offering the highest interest rates i.e. 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. |
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| STEP 2: Decide on your investment amount (principal). The standard tenure for deposit below BND100,000 is one month. Option of 2-week tenure is available for deposit of BND100,000 and above. STEP 3: Choose an exchange rate between the two currencies (the pre-agreed exchange rate or strike price) based on your views on foreign exchange movements. An interest rate for the base currency will also be fixed. STEP 4: You will receive your principal plus interest in the Base or Alternate Currency depending on whether the pre-agreed exchange rate or strike price is reached on the fixing date i.e. two (2) business days before maturity*. The pre-agreed exchange rate will apply should your principal and interest be converted into the Alternate Currency. |
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| Let us show you how it works |
| You invest BND100,000 (principal Base Currency) in a one-month BTCD at 11% interest rate. You have chosen AUD as the Alternate Currency and the pre-agreed exchange rate is fixed at 1.30. |
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| Base Currency Amount |
BND100,000 |
| Alternate Currency |
Australian Dollar |
| Interest Rate |
11% per annum |
| Tenure |
1 month |
| Pre-agreed BND/AUD exchange rate at the time of deposit |
1.30 |
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| On maturity of the deposit, your net proceeds due to you is computed as follows: |
- Scenario 1 - BND weakens against AUD
For example: AUD/BND is higher than 1.30, you will receive your deposit in BND:
BND100,000 + (BND100,000 x 11% x 30/365) = BND100,904.11
- Scenario 2 – BND strengthens against AUD
For example: AUD/BND is lower than 1.30, you will receive your deposit in AUD at the pre-agreed exchange rate of 1.30.
{BND100,000 + (BND100,000 x 11% x 30/365)}
/1.30 = AUD77,618.55
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| Planning 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 maximise the likelihood of receiving your proceeds back in the same currency plus enjoying higher interest.
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| What to do when strike price is reached |
| We have laid out a few options for you when your proceeds get converted into the Alternate Currency: |
- You can place a new BTCD using the Alternate Currency as your Base to strike back.
- You can place the Alternate Currency in a Foreign Currency Fixed Deposit Account which offers high interest.
- You can place the Alternate Currency in a Foreign Currency Savings Account if you prefer greater flexibility or while still exploring other investment options.
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| Important note: |
BTCD is a structured deposit where the principal and interest is payable in either the Base Currency or the Alternate Currency. You may be subject to risks associated with exchange rate fluctuations and exchange controls. Should you receive the principal and interest in the Alternate Currency and wish to immediately convert your proceeds back to your Base Currency at the prevailing exchange rate, the amount you receive may be less than the original deposit amount.
BTCD is intended to be held to maturity. No partial withdrawal of the principal is allowed and any early termination will incur a cost which will be deducted from your deposit. 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 appeared here are for illustrative purposes only.
For the latest rates, please click here. |
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| * The bank will compare the pre-agreed exchange rate with the prevailing market rate or spot price at 10:30am Brunei time. |
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