Forward RMB-FX Trading

Product Introduction

Forward RMB-FX Trading refers to a foreign exchange settling and selling business in which the customer signs an agreement with CGB to set the type of foreign currency, amount, term and exchange rate of the foreign exchange to be settled or sold in the future, and processes the foreign exchange settling or selling business at the due time according to the type of foreign currency, amount and exchange rate specified in that agreement.

Product Features

1.The currencies for the forward RMB-FX trading business of CGB include US dollar, Hong Kong dollar, Euro, Japanese Yen, British pound, Swiss franc, Australian dollar, Canadian dollar, Singapore dollar, Swedish koruna, Norwegian koruna and Danish koruna;

2.There are totally 15 terms, namely, 1-week, 2-week, 3-week, 1-month, 2-month, 3-month and 12-month (the quotation and trade in other non-standard terms are available);

3.The forward settlement date can be a specific date, or any date in a time interval in the future (i.e. term selected trade).

Product Examples

On June 1, Company A signs a goods supply contract with an overseas importer at the amount of USD one million, and agrees that the importer makes the goods payment on September 1. In order to prevent the risk in unfavorable change of USD exchange rate, Company A signs a forward exchange settlement contract with the bank to agree that the company settles the foreign exchange at the exchange rate of 6.88, and that the transaction date is September 1. By doing so, no matter what the rate of exchange between USD and RMB on September 1 is, Company A has fixed the price, i.e. it can settle its foreign exchange at the exchange rate of 6.88.

Our Commitments

1.Via the forward RMB-FX trading business, the customer can fix the exchange buying and selling rates of future foreign exchange income and expenditure to prevent the risk in exchange rate, so that the customer can carry out financial accounting, focus on its major business, and boost its business competition power;

2.CGB can provide forward RMB-FX trading services with multiple currencies and various terms;

3.For foreign exchange income or expenditure without a certain date, CGB can provide a term selected trade in any time interval; the customer can select any date in the selected time interval to make the transaction, or make multiple transactions in that time interval within the range of the agreed total amount.