Currency Switching

Fixed Time Deposits
with Unbounded Flexibility

Offering you a flexible choice to switch your time deposit from one currency to another for unlimited times before maturity, Currency Switching service lets you benefit from the favorable FX buying and selling.

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  • Smart switching brings potential wealth growth

  • Seize favorable FX buying and selling opportunities during the deposit period without losing the interest income from time deposits

  • Hedge against the depreciation of time deposits as a result of currency fluctuation

  • Lock in the currency gains before your time deposit matures

  • Multiple options and benefits

  • 10 currencies available (USD, GBP, JPY, EUR, CHF, AUD, CAD, NZD, CNH and HKD)

  • Minimum transaction amount at USD30,000 or equivalent

  • Unlimited FX forward transactions within deposit period (12 months or below)

  • No commission or handling charges

  • Principal and interest of the time deposit will be converted into final switched currency upon maturity at the pre-agreed exchange rate


Learn more about Importat Facts of Currency Switching

Exchange rate trend advantageous to investor Exchange rate

Investor placed a 1-month HKD time deposit of HKD 500,000.


During the deposit period, he buys AUD at 5.75 and sells it at 5.8.


He has earned the rise in AUD value other than the fixed deposit.


Time Deposit
Deposit Amount Deposit Start Date Maturity Date Interest Rate (p.a.) Principal & Interest on Maturity Date
HKD 500,000 July 6 August 5 0.1% HKD 500,041.10
Currency Switching
Forward Contract Start Date Transaction Details Agreed Forward Rate Value Date
July 8 Sell HKD 500,041.10
Buy AUD 86,963.67 		5.75 August 5
July 15 Sell AUD 86,963.67
Buy HKD 504,389.29 		5.8 August 5
Extra Gain: HKD 504,389.29 - HKD 500,041.10 = HKD 4,348.19
Notes:
  • The above examples are for illustrations only and should not be used as an indication of historical trends or further performance.
  • For transactions involving HKD, interest will be calculated on the basis of 365 days per year.

Learn more about Importat Facts of Currency Switching

Exchange rate trend disadvantageous to investor Exchange rate

Investor placed a 3-month HKD time deposit of HKD 500,000.


During the deposit period, he intends to take advantage form the ups and downs of a series of foreign currencies.


Eventually, the market does not go the way he anticipated and thus he suffers a loss.


Time Deposit
Deposit Amount Deposit Start Date Maturity Date Interest Rate (p.a.) Principal & Interest on Maturity Date
HKD 500,000 July 10 October 9 0.5% HKD 500,623.29
Currency Switching
Forward Contract Start Date Transaction Details Agreed Forward Rate Value Date
July 15 Sell HKD 500,623.29
Buy EUR 58,689.72 		8.53 October 9
July 22 Sell EUR 58,689.72
Buy USD 64,265.24 		1.095 October 9
July 29 Sell USD 64,265.24
Buy JPY 7,017,764 		109.2 October 9
August 5 Sell JPY 7,017,764
Buy HKD 498,261.24 		0.071 October 9
(Loss)：HKD 498,261.24 - HKD 500,623.29 = (HK$2,362.05)
Notes:
  • The above examples are for illustrations only and should not be used as an indication of historical trends or further performance.
  • For transactions involving HKD, interest will be calculated on the basis of 365 days per year.

Learn more about Importat Facts of Currency Switching

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Health Warning: Currency Switching Services is an investment product. The investment decision is yours but you should not invest in the Currency Switching Services unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.

Notes:

  • The above examples are for illustrations only and should not be used as an indication of historical trends or further performance.
  • The HKD interest amount is calculated at the relevant interest rate on the basis of the actual number of days elapsed in an interest period and a 365-day year.
  • The AUD interest amount is calculated at the relevant interest rate on the basis of the actual number of days elapsed in an interest period and a 360-day year.

Risk Disclosure:

  • Currency exchange rates are affected by a wide range of factors, including national and international financial and economic conditions and political and natural events. The effect of normal market force may at times be countered by intervention by central banks and other bodies. At times, exchange rates, and price linked to such rates, may rise or fall rapidly. The fluctuations in the exchange rate of a foreign currency may result in losses in the event that you convert HKD to any foreign currency or vice versa.
  • RMB is currently not freely convertible and is subject to exchange controls and restrictions (which are subject to changes from time to time without notice). You should consider and understand the possible impact on your liquidity of RMB funds in advance. The fluctuation in the exchange rate of RMB may result in losses in the event that you convert RMB into other currencies. Onshore RMB and offshore RMB are traded in different and separate markets operating under different regulations and independent liquidity pool with different exchange rates. Their exchange rate movements may deviate significantly from each other.
  • Exchange controls or other monetary measures may be imposed by a government, sometimes with little or no warning. Such measures may have a significant effect on the convertibility or transferability of a currency and may have unexpected consequences for a FX Forward Transaction that the customer is holding.
  • Currency Switching Service is an investment. The investment decision is yours but you should not invest in this product unless the intermediary who sells it to you has explained to you that this product is suitable for you having regard to your financial situation, investment experience and investment objectives.
  • This product is not principal protected.
  • FX Forward Transaction executed under Currency Switching Service is NOT equivalent to time deposit. FX Forward Transaction executed under Currency Switching Service is NOT a protected deposit and is not protected by the Deposit Protection Scheme in Hong Kong. Time Deposit hold for Currency Switching Services is a deposit qualified for protection by the Deposit Protection Scheme in Hong Kong.
  • FX Forward contract under Currency Switching Service is not approved or governed by any rules or regulations in Hong Kong.
  • If the final switched currency is not your home currency, and you choose to convert it back to your home currency upon maturity, you may make a gain or loss due to exchange rate fluctuations. In some cases, even if you receive the interest of the deposit, if the final switched currency depreciates against your home currency, you may still suffer a loss if you convert it back to your home currency upon maturity.