Dual Currency Investment

Credible Deposits for You and the Future

Q: What is the period of Dual Currency Investment placement?

The placement period of Market Linked Deposit is 3, 6, and 12 months.

Q: What are the currencies that can be transacted?

The currencies that can be applicable for transactions are USD and SGD.

A combination of non-derivative and derivative instruments for your deposits

Dual Currency Investment (DCI)

Structured products combine deposit transactions (non-derivative) with Forex Option Sales (derivative) that can provide higher returns than conventional deposits

Foreign Currency

Available in foreign currencies, namely USD and SGD

Tenor: 1, 3, 6 months

It has a variety of tenors ranging from 1 to 6 months

Deposits in USD

There is a minimum placement of USD 20,000

Higher Return

Guaranteed returns are more profitable

Foreign Currency

Available in foreign currencies, namely USD and SGD

Tenor: 1, 3, 6 months

It has a variety of tenors ranging from 1 to 6 months

Deposits in USD

There is a minimum placement of USD 20,000

Higher Return

Guaranteed returns are more profitable

Customer Risk Consideration

Dual Currency Investment BTN is classified as a non-principal protected product, where at maturity, the principal can be converted into an alternative currency
If the principal is converted into an alternative currency at maturity, and the customer wishes to convert back to the original currency, there is a potential for loss
Customer's profit depends on market conditions and exchange rate fluctuations at the time of maturity
Placement of funds in this product is not included in the scope of the Government guarantee program or the Deposit Insurance Corporation (LPS)

Transaction Illustration

Assumption
Amount	USD 100.000
Tenor	30 Days
Strike/Conversion Rate	1,350
Strike Currency Interest	3% (gross pa)

Scenario 1 - Not Converted

At option maturity (fixing date), the USD/SGD spot rate is 1.325, lower than the strike price of 1.350

BTN will receive

Principal

USD 100.000

Interest

3% x 30/365 x USD 100.00
USD 246,58 (Gross)
USD 197,26 (Net)

Scenario 2 - Converted

At option maturity (fixing date), the USD/SGD spot rate is 1.375, higher than the strike price of 1.350.

BTN will receive

Principal

USD 100.000 x 1,350
135.000 SGD

Interest

3% x 30/365 x USD 100.00
USD 246,58 (Gross)
USD 197,26 (Net)

Find Answers to Your Questions

What is the legal basis for implementing a Structured Product?

The legal basis for implementing Structured Product is in POJK Number 7/POJK.03/2016, dated January 26, 2016, and POJK Number 6/POJK.03/2018, dated April 19, 2018.

What are the advantages of Dual Currency Investment over time deposits?

The advantages of Dual Currency Investment are that it can provide a higher return than conventional deposits.

What is the period of Dual Currency Investment placement?

The Dual Currency Investment placement period is 3, 6, and 12 months.

What are the currencies that can be transacted?

The currencies that can be applied for transactions are USD and SGD.

How much yield is obtained from Dual Currency Investment?

The yield obtained by Dual Currency Investment depends on the underlying market option.

Can Dual Currency Investment be automatically renewed?

No, Dual Currency Investment cannot be automatically renewed.

Can customers apply for Early Termination of Dual Currency Investment?

No, customers are not entitled to apply for Early Termination.

Is Dual Currency Investment guaranteed by LPS?

Yes, Dual Currency Investment is guaranteed by LPS. Article 10 of Law No. 24 Year 2004 on Deposit Insurance Corporation states that only current accounts, deposits and savings are guaranteed by LPS.

What is the evidence of Dual Currency Investment placement held by the customer?

Proof of Dual Currency Investment placement is in the form of Trade Confirmation.