Twin Currency Deposit

OVERVIEW

Twin Currency Deposit is a structured investment product that is linked to a pair of currencies. The tenors can range from one week to one month. All you need is a minimum deposit of BND25,000 to start.

This is suitable for you if:

You are comfortable in receiving the principal amount in either the Base Currency or Alternate Currency.
You have the need to hold the principal amount (only) from either the Base Currency or the Alternate Currency.
You have a view on exchange rate movements and are willing to accept exchange rate risk in respect of the principal, in return for the possibility of earning a higher interest rate as compared to traditional time deposit.
You are comfortable with the investment tenor and will not withdraw from this investment prior to its Maturity Date.

Key Features

Higher interest rate compared to normal fixed deposit.

Short tenor ranging from 1 week to 1 month.

Choice of currency pairs, tenor, strike rate and interest rate based on your investment needs and risk appetite.

At maturity, redemption can be in Base Currency or Alternate Currency depending on the currency fluctuation.

Non-principal protected.

Opportunity to buy the Alternate Currency at lower interbank rate.

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A step by step guide on how it works

Step 1

Choose a pair of currencies: Australian Dollar (AUD), Euro (EUR), Pound Sterling (GBP) or 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 deposit amount this will be your principal.
The standard tenor for deposit below BND100,000 is one month.
Option of 1 to 2 weeks tenor is available for deposit of BND100,000 and above.

Step 3

Choose the pre-agreed interbank rate or strike rate between the two currencies based on your views on foreign exchange movements.
The interbank rate for the base currency will also be fixed.

Step 4

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.

Principal Amount/ Base Currency

Alternate Currency

Interest Rate

Tenor

Pre-Agreed Exchange Rate/Strike Price

BND 100,000

GBP

BND/GBP=1.7918

2 business days before maturity

Scenario 1
BND/GBP = 1.800
BND weaken against GBP

Scenario 2
BND/GBP = 1.7800 BND strengthens against AUD

Payout Currency on maturity date

At maturity, you will receive your principal and interest in BND.

6.00% p.a.

Two Weeks

At maturity, you will receive your principal and interest in GBP converted at the agreed rate.

Principal + Interest received upon maturity

Principal BND 100,000

Interest
BND230

Total Principal plus interest in base currency BND100,230

Principal BND 100,000

Interest
BND230

Total Return of
BND 100,230

Total Principal plus interest in alternate currency
BND 100,230/1.7918
=GBP 55,938

*All rates and figures that appear here are for illustrative purposes only.

Eligibility Criteria
Required Documents
Fees & Charges
Terms & Conditions
Other Information

Eligibility Criteria
Eligibility Criteria
21 years and above
Baiduri Bank account holder
Minimum deposit of BND25,000 (only for 1 month tenor)
Minimum deposit of BND100,000 (for 1 week/2 weeks/1 month tenor)
Subject to risk profiling and client suitability profiling
Required Documents

Required Documents
Valid identity card or passport.
Fees & Charges

Fees & Charges
No subscription fee.
Terms & Conditions

Terms & Conditions
Generic Risk Disclosure statement for Twin Currency Deposit (TCD) and Term & Conditions will be provided upon subscription.
Other Information
Other Information
The principal and yield and 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 you receive may be less than the original deposit amount.

This product 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.

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