It refers to the RMB-FX trading, in which a customer enters into agreements with a bank to determine the currency, sum, term and exchange rate of foreign exchange to be sold or purchased and transacts the RMB-FX trading as per the currency, sum and exchange rate specified therein.

1.Fixed cost and hedging: This service may help a company to fix the costs in terms of foreign exchange to gain, which will serve to ensure currency value and facilitate the financial personnel of a company to accurately predict the cost and benefit; 2.Types of business: There are two types of business available, fixed date transaction and option forward transaction. Fixed date transaction means that the settlement date is a fixed date in the future. However, if a company will receive or pay any foreign currency at an unfixed date in the future, it may choose option forward transaction, which will make it convenient for the company to flexibly choose a transaction date and to make good use of the fluctuation of exchange rate immediately.

1.Under current account, forward RMB-FX trading is applicable for foreign exchange receipts and disbursements, which may transact RMB-FX trading according to Regulations on Management of Settlement, Sale, and Payment of Foreign Exchanges. All the valid certificates required for RMB-FX trading shall be provided by the customer during the completion of forward RMB-FX trading upon maturity. 2.Forward RMB-FX trading under capital account is limited to the following: foreign exchange loan of CGB; compensation of foreign loan registered with the SAFE; foreign exchange receipts and disbursements in direct investment registered with the SAFE; foreign exchange capital earning of foreign-invested enterprise registered with the SAFE; foreign exchange earning of domestic institutions that go public out of China, registered with the SAFE; other foreign exchange receipts and disbursements that are approved by the SAFE.

Price of Forward RMB-FX Trading £½ spot exchange rate ¡À premium/discount points. The trade price for this shall be in conformance with the trade prices of all the branches

The current exchange rate of USD/RMB is 6.8218 and the USD premium is 45 points in 6 months. If a customer predicts that USD 30,000,000 will be paid 6 months later, the customer may enter into agreement with the bank for purchase of USD of 6 months later to prevent rising of exchange rate. Then the bank will sell USD at the agreed exchange rate of 6.8263 (6.8218£«0.0045), the transaction date of which will be 6 months later. If the USD/RMB exchange rate rises to 6.8275 in 6 months, the customer may obtain an underpayment of 30,000,000 ¡Á (6.8275-6.8263) = RMB 36,000.

Business Outlets

Capital transaction credit line by CGB is required for the transaction of this service. For application of capital transaction credit line, please contact relationship manger of local branch.

RMB/foreign exchange rate

Inquiry at business outlets