Foreign Exchange Swap

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.

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: USD, THB, CNY and other major currencies.

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.

Applicant shall apply credit limit for such trading.

After foreign exchange forward dealing, customer in need of early settlement or delayed settlement may adjust the former settlement date through foreign exchange swap.

1. Signing the agreement: before entering into foreign exchange optional transactions, customers are required to sign related agreements with Bank of China.
2. Implementation of margin: applicant shall apply credit limit for such trading.
3. Transaction procedures: customers engaging in such product must have credit supports. Upon the conclusion of the transaction; Bank of China shall send the transaction confirmation to the customer. Customers are required to handle settlement with Bank of China on the settlement date.