What is Dual Currency Investments (DCI)?
A Dual Currency Investment is a structured instrument without principle protection. With DCI, you can enjoy a short term investment that is linked to two foreign currencies that you've chosen. You will get your principle plus interest in either base or alternate currency that you choose when you buy the product based on result on the fixing date (2 days before maturity date)
Who can invest in Dual Currency Investment (DCI)?
If you follow currency movement trends, or are looking for a short-term investment with exposure in the foreign exchange market that could potentially give returns above those offered by local money market instruments, then DCI is a good alternative for you. With DCI, you will receive your principal investment and a return in either of your two chosen currencies.
* Referring to Financial Services Authority Regulation, you can begin a DCI if you are a personal customer who has asset portfolios in the form of cash, a current account, a saving and/or a term deposit of at least IDR 5 Billion or its equivalent in foreign currency.
How do Dual Currency Investments work?
STEP 1 Choose the available base currency and linked currency pairing.
STEP 2 Select the term and the conversion rate.
Investment term: 1 week to 3 months.
Conversion rate: choose your preferred conversion rate based on the prevailing currency market conditions.
Minimum investment amount: US$20,000 or equivalent in foreign currency.
Risk disclosure:
DCI are not the same as nor should be treated as a substitute for normal fixed term deposit. The return in relation to a deposit will depend upon market conditions prevailing at during your investment period with DCI. The fluctuation of two foreign currencies will affect the level of return of DCI. If you want to convert your investment into another currency at maturity, you are prone to lose some of your investment due to exchange rate fluctuation. You should consider whether the products are suitable based on your risk profile, investment experience and objectives. Structured Investment Deposit is a structured product involving derivatives. The investment decision is yours but you should not invest in Structured Investment Deposits unless the intermediary who sells it to you has explained to you that the product is suitable for you, having regard to your financial situation, investment experience and investment objectives. This investment product is not protected and not covered by the Indonesia Deposit Insurance Corporation
Issuer's Risk
You rely on HSBC's creditworthiness. The product is subject to both the actual and perceived measures of the credit worthiness of the Bank and there is no assurance of protection against a default by the Bank in respect of its payment obligations. In the worst case scenario (e.g. insolvency of issuer), the investor may receive nothing and the potential maximum loss could be 100% of the investment amount and no payment of interest entitled to you.
