Dual Currency Investment is a financial tool for investors who, by drawing on their experience and knowledge of the FX market, can get high return on investment within short time. Clients can earn enhanced Interest Rate on invested capital in return for acceptance of a certain currency risk associated with foreign exchange exposure: The higher risk is taken, the higher the Interest Rate is offered.
The return on a Dual-Currency Investment depends on the fluctuations of the selected currency pair – Base Currency and Alternative Currency. If the currency market projections are at the predetermined rate, you will receive the invested principal plus the Interest proceeds.
Dual Currency Investment can be opened in PLN, EUR, USD, GBP or CHF. Dual Currency Investment is opened in the Base Currency that is expected to depreciate against the Alternate Currency.
Dual Currency Investment can be opened for 1 week, 2 weeks, 3 weeks, 1 month, 5 weeks, 2 months, 3 months, 6 months.
You set the Strike Rate at which the Base Currency will be converted into the Alternate Currency. Strike Rate can be equal to Spot Rate on the investment opening day or “shifted” from 0.001 to 0.30.
Interest rate is agreed upon the investment outset and it depends on the selected currency pair, Investment Period and Exchange Rate.
The Reference Rate is compared versus the Strike Rate on the Settlement Day. On the Investment Maturity Day, the Dual-Currency Investment is delivered:
Before deciding to open the Dual Currency Investment, please read the Important Information section which contains information about fees and the product-associated risks.
If you are interested in the Dual Currency Investment, visit our branch and sign the agreement. To open the first investment, visit one of our branches or contact CitiPhone. To open the next investment, choose the way that is the most convenient to you:
Dual-Currency Investments are available only to Citibank Personal Account holders. The product is not available to U.S. citizens. Depending on the difference between the exchange rate and the current purchase rate of the Base Currency on the Investment Maturity Day, the return on investment delivered in the Base Currency may be lower or none. If the Exchange Rate differs from the current purchase rate of the Base Currency, the amount received in the Base Currency may be lower than the amount originally invested.
The above examples of dual currency transactions are only shown to help better understand how the investment product works and they are not an offer or solicitation of an offer in the meaning of Article 66 of the Civil Code. For details of the investment offer, please visit our Citigold branches. The nominal value of the Dual Currency Investment is covered by the statutory fund guarantee system Under the Bank Guarantee Fund Act of December 14, 1994 (Journal of Laws of 2009, No. 84, item 711, as amended).
The guarantee amount is the PLN equivalent of EUR 100 000 at the average rate of the National Bank of Poland as of the date on which the conditions of the guarantee are met. The above amount sets the maximum amount of claims of a deposit holder against the BFG, irrespective of the amount and a number of accounts used to maintain the funds or the amount of receivables from this specific bank. The BFG’s guarantee is not a guarantee of earning profits from the Dual Currency Investment.
Dual Currency Investments are exposed to investment risk, including the risk of loss of part of the invested capital. Before making any decision about this investment, you should learn about the main risks associated with this product that have been referred to in detail in: MIFID information leaflet
When buying a Dual Currency Investment, there is a product-embedded margin involved. The bank’s margin embedded in the product depends on the investment option selected and from time to time is presented as a percent of the Investment Amount per year. For margin-related details, please ask your Relationship Manager.
In the event when the client terminates the Dual Currency Investment prior to the maturity date, he/she will incur the costs including the option fee connected with reversing the option transaction. For more information on termination costs, please read the Investment Product Regulations or ask your Relationship Manager. The client who terminates the Dual Currency Investment prior to the maturity date shall not be entitled to receive the investment Interest.
The profits from Dual-Currency Investment Interest disbursed to individuals who do not conduct non-agricultural business activity are subject to 19% tax rate. The tax is collected and paid by the Bank. Tax regulations may be subject to change. Any profits in foreign currencies shall be converted into PLN applying the rates as provided in appropriate tax regulations.
Below we present statistics on the results achieved by Clients investing in Other derivative instruments – Dual Currency Investments on OTC non-regulated markets. Data refers to the period from 01.04.2021 - 30.06.2021.
| % of active customers who obtained in the previous quarter: | |||
|---|---|---|---|
| Class of derivative instruments | Positive result on transactions | Zero result on transactions | Negative result on transactions |
| Currency - Other derivative instruments – Dual Currency Investments | 82.9% | 0,0% | 17.1% |
