Introduction
Foreign exchange swap refers to currently buying one currency and selling another currency while forward re-selling the bought currency and buying another one currency. That is to say, a swap transaction composes of a spot deal and a forward deal.
Features
1. The combination of foreign exchange spot and forward deals can lock up the exchange rate risk, which enable customers match up, with no need to bear risk of foreign exchange rate changes, the cash flows of assets in two foreign currencies to satisfy corporate demands.
2. Trading currency types: all kinds of freely convertible currencies mainly including USD, EUR, GBP and JPY.
Interest Rate
The interest rate of RMB swap business shall be in line with the inter-bank offered rate, and be adjusted concerning the market situation.
Term
Bank of China provides standard or non-standard foreign exchange swap offers within one year, and customers also can entrust Bank of China with foreign exchange swaps with a term more than one year.
Guarantee
Customers need to pay a certain amount of cash as the security deposits for foreign exchange transactions except the spot deal.
Target Customers
Domestic institutions with foreign exchange income and expenditure.
Process
1. Application: when applying for foreign exchange swap deals at the operation departments of Bank of China, customers need to submit relevant applications and qualified certificates.
2. Review: the operation departments check the authenticity and compliance of customer applications and corresponding certificates in accordance with relevant provisions or regulations on foreign exchange management.
3. Inquiry: the operation departments of Bank of China inquire the quotations from corresponding fund departments.
4. Transaction procedures: customers engaging in such a product must have credit supports or provide a certain amount of cash as the security deposit to the customer relations department.; the relevant transactions become effective upon signing on the applications with seals affixed by relevant departments of Bank of China,; settlement departments are responsible for sending relevant transactions confirmation to customers; customers are required to handle actual settlement with Bank of China at the settlement date.
Our Advantages
Currently Bank of China foreign exchange swap business makes offers to both customer and other banks.
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