Optional Forward Transaction of Foreign Exchange

Optional Forward Transaction of Foreign Exchange refers to the foreign exchange forward deal that enables customers to settle with prescribed foreign exchange rate on any working day within a certain contracted period in the future. Customers can choose the settlement date by themselves.

1. Customers entrust Bank of China to settle with the contracted foreign exchange rate within a certain designated period, and implement the conversion between different foreign currencies by buying a kind of currency and selling another.
2. When the settlement date is uncertain, Bank of China can fix the foreign exchange rate of a certain period in the future at a level on the settlement date to fully lock up the exchange rate risk, and to reduce the probability of breach of agreement caused by customers' failure to normally perform the trade contract.

The product applies to customers who have the need to conduct foreign currency deals within a certain period in the future but having not determined the specific settlement date, and can be used to settle corporate import and export trade and so on.

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. Inquiry: The applicant determines the details of a forward foreign exchange transaction and makes the corresponding inquiry to Bank of China.
4. Completion of Transaction: after concluding the transaction, Bank of China will deliver the transaction confirmation to the applicant in written form.
5. Settlement: the actual settlement shall take place on the settlement date. The customer can, concerning his/her needs, require Bank of China to unwind the transaction or to extend the trading session before the maturity date of the transaction.