Dual Currency Deposit

Dual Currency Deposit

A fixed deposit with variable terms for the currency of payment. Deposits are made in one currency, but withdrawals at maturity occur either in the currency of the initial deposit or in another agreed upon currency.

Notes:

This is a deposit that creates a foreign exchange rate risk for the investor. Similar to a currency swap, you can be rewarded or punished for the risk taken.

See also: Currency, Currency Swap, Exchange Rate, Swap