Risk Reminder regarding Fluctuations of Exchange Rates on Foreign Currency Markets
Since international markets paid close attention to this year’s events such as the “Brexit” or presidential elections in the US during the polls, there were severe fluctuations on the foreign currency exchange markets, and the circulation of each major currency was notably reduced.
Under these particular circumstances on the market, Bank of China continuously strives to offer quoted prices for customers with large-scale foreign currency exchange transactions. Taking into consideration that there might possibly arise some uncertainty on the entire international market, our bank will adjust the spread of exchange rate in accordance with the global market situation. In such case a respective currency ’s spread of exchange rate might potentially be higher than the regular level and taking the circumstances into account the bank might have to lower each transaction’s maximum limit.
Immediate adjustments of exchange rates according to changing situations on the international currency exchange market are both a necessary measure for a bank to avoid market risks as well as a regular operational conduct. At the same time these steps are in accordance with the respective regulations of financial supervision. The above described short-term adjustment measures will be cancelled when the markets regain stability.
Therefore, we would like to remind our customers to pay close attention to fluctuating situations on the markets and to try best to avoid foreign currency exchange transactions during these particular events. Nonetheless regardless of the markets circumstances, customers should always pay close attention to the real time exchange rate when executing foreign exchange transactions, in particular in case of execution through self-service channels. Customers should evaluate the risk level of exchange rate changes that they are willing to take in order to avoid any financial loss.
Bank of China Frankfurt Branch
December 1, 2016