Dual Currency Placement

Looking for potentially higher returns?

If you have international financial interests and are prepared to accept a currency risk in exchange for the opportunity to earn a potential return, a Dual Currency Placement could be the answer.

See our Dual Currency Placement demonstration

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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.

Some of the terms used with a Dual Currency Placement are technical so we have included a glossary below. An explanation of the words in italics can be found there.

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 a Dual Currency Placement in action

A Dual Currency Placement is a complex investment, and 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 for you is to see them in action. We have prepared an interactive demonstration to help you see how a Dual Currency Placement can work in different market conditions to introduce the calculations involved, and to help you decide whether it has a part to play in your financial arrangements.

See our Dual Currency Placement demonstration

See our Dual Currency Placement brochure for a more detailed explanation of our Dual Currency Placement product and its risks

Speak to your Relationship Manager for further details

See the Dual Currency Placements Terms and Conditions for London and Jersey

You can choose your Base Currency and Alternate Currency from thirteen (13) of the world's most common currencies, and you 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

Alternate Currency

means the currency in which we buy the Base Currency from you, in the event we choose to exercise the Currency Option.

Base Currency

means the currency in which you agree to sell us the Currency Option and the currency in which the Initial Investment is made.

Currency Option

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..

Expiry Date

means the date on which your Dual Currency Placement matures and the date on which we pay you the Initial Investment and Option Premium.

Initial Investment

means the initial principal sum invested by you and which we may buy back from you in the Alternate Currency (this must be at least US$20,000 or currency equivalent)..

Option

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.

Option Premium

means the premium payable by us to you as consideration for you granting us the Currency Option.

Strike Rate

means the pre-agreed exchange rate of one unit of the Base Currency into the Alternate Currency.

Term

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.

Take advantage of a Dual Currency Placement

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