What is a Dual Currency Placement?
A Dual Currency Placement is a complex short-term foreign exchange investment that lets you take advantage of our expertise in foreign exchange markets. As an investment product, it carries higher risks than short term savings products, but it can also offer potentially greater returns. To discuss whether a Dual Currency Placement is right for you, contact your Relationship Manger who will be pleased to help.
Some of the terms relating to a Dual Currency Placement are technical, so we have included a glossary which defines all words seen in italic.
How they work
With a Dual Currency Placement you invest an Initial Investment in one currency (the Base Currency), and choose an Alternate Currency which you are indifferent to holding.
A Dual Currency Placement uses the foreign exchange Options market. You sell a foreign Currency Option to Citi, for which you receive an Option Premium. The Option Premium you receive is determined by various factors such as the Term, currency pair and Strike Rate. This Option Premium means you can potentially receive higher returns in comparison to a short term savings product, although the actual return will depend on your agreed Strike Rate and the position of the markets at the end of the Dual Currency Placement Term.
However, such returns are not certain and Dual Currency Placements do not offer the same protection on amounts invested as a traditional savings vehicle. You may lose a part of the sum invested, and as it is an investment, there are higher risks than traditional savings vehicles. At Citi International Personal Bank, we offer Dual Currency Placements on an advised basis and a non-advised basis.
See our Dual Currency Placement
brochure for a more detailed explanation of our Dual Currency Placement product and its risks.
Please speak to your Relationship Manager
for further details.
See a Dual Currency Placement in action
A Dual Currency Placement is a complex investment. Its outcome and the returns it offers will depend on the movements of the international currency markets. The best way to understand exactly how Dual Currency Placements work is to see them in action.
We have prepared an interactive demo to help you see how a Dual Currency Placement can work under different market conditions, to introduce the calculations involved, and to help you explore the product’s fit with your investment strategy.
You can now open and manage a Dual Currency Placement through Citi Online at your own convenience. Managing DCPs online gives you maximum freedom and flexibility, and is done on a non-advised basis.
Before you take out a Dual Currency Placement for the first time, your Relationship Manager will complete a risk profile with you to make sure the product is suitable for your personal wealth management strategy and investment experience to date. You can arrange to do this quickly and easily by contacting them.
See how to manage your Dual Currency Placements online with our short
Help Centre Videos.
To take advantage of this functionality and a whole host of online wealth management services, register now for Citi Online.
You can choose your Base Currency and Alternate Currency from thirteen (13) of the world's most common currencies, and also decide the investment Term. The minimum you can invest is US$20,000 or currency equivalent.
- Australian Dollars (AUD)
- British Pounds (GBP)
- Canadian Dollars (CAD)
- Czech Koruna (CZK)
- Euro (EUR)
- Hungarian Forint (HUF)
- Japanese Yen (JPY)
- Polish Zloty (PLN)
- Romanian Lei (RON)
- Russian Rubles (RUB)
- Swiss Francs (CHF)
- Turkish Lira (TRY)
- US Dollars (USD)
Dual Currency Placement Glossary
means the currency in which we buy the Base Currency from you, in the event we choose to exercise the Currency Option.
means the currency in which you agree to sell us the Currency Option and the currency in which the Initial Investment is made.
means the right (but not the obligation) for Citibank N.A., London Branch or Citibank International Plc or Citibank N.A., Jersey Branch, as appropriate to convert your Initial Investment and Option Premium into the Alternate Currency at the Strike Rate..
means the date on which your Dual Currency Placement matures and the date on which we pay you the Initial Investment and Option Premium.
an Option is a financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of the Option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the corresponding obligation to fulfil the transaction. The underlying asset can be a stock, a bond, a currency or a future. In a Dual Currency Placement, Citi International Personal Bank will buy a Currency Option from you.
means the premium payable by us to you as consideration for you granting us the Currency Option.
means the pre-agreed exchange rate of one unit of the Base Currency into the Alternate Currency.
means the period of time from when the Dual Currency Placement begins until the Expiry Date. The Term must be less than nine (9) months and will normally be one (1) or two (2) weeks or one (1) month.