What is a double currency unit?
Double currency Units (“DCU”), also called Double Currency Notes (“DCN”) or Double Currency Investments (“DCI”), are a form of short term bonds that have an embedded option allowing the issuer to redeem the bond including the coupon in an alternative currency.
Which country has double currency?
China is not one to play by the rules when it comes to currency and so while most countries are happy with one currency, China has two. Confusingly, both are referred to as the yuan or renminbi and both have the same bank notes but, crucially, they are not worth the same.
What is double exchange rate?
What Is a Dual Exchange Rate? A dual exchange rate is a setup created by a government where their currency has a fixed official exchange rate and a separate floating rate applied to specified goods, sectors, or trading conditions. The floating rate is often market-determined in parallel to the official exchange rate.
What is dual currency product?
In finance, a dual currency deposit (DCD, also known as Dual Currency Instrument or Dual Currency Product) is a derivative instrument which combines a money market deposit with a currency option to provide a higher yield than that available for a standard deposit.
What is MaxiYield?
MaxiYield is a Dual Currency Investment. It offers: Potentially higher yields on your currency investments. An opportunity to potentially capitalise on foreign exchange movements. The freedom to decide on a currency pair from a wide range of currencies* to suit your needs.
How does Dual Currency Investment work?
Dual Currency Investment is an investment made in the Base Currency, which is expected to depreciate against the Alternative Currency. The Interest Rate level along with the Strike Rate at which the Base Currency may be converted into the Alternate Currency is agreed at the outset of the investment.
Can a country use 2 currencies?
You have Cyprus with both Euro and Turkish Lira, Bhutan with Ngultrum and Indian Rupee, Guatemala with Quetzal and US Dollar, Most of the British overseas territories, Palestine with both Israeli Shekel and Jordanian Dinar, and you can tell almost every country has two currencies with the US Dollar is acceptable and …
What is a weak currency?
A weak currency refers to a nation’s money that has seen its value decrease in comparison to other currencies. Weak currencies are often thought to be those of nations with poor economic fundamentals or systems of governance.
How does a dual currency note work?
A Dual Currency Investment is a non-principal protected investment product with floating return. By linking to the performance of foreign exchange rates, you will have a chance to earn potential return, as well as meet your foreign currency investment needs.
How does dual currency investment work?
Why is dual investment high risk?
The selling point for dual currency deposits is the chance to earn significantly higher interest rates. The risk for the investor is that the investment may be converted to a different currency if the counterparty chooses to exercise their option.