Citi Handlowy - Investments - Dual Currency Investment

The return on a Dual-Currency Investment depends on the fluctuations of the selected currency pair – Base Currency and Alternative Currency. If the currency market projections are at the predetermined rate, you will receive the invested principal plus the Interest proceeds.

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.
Strike Rate depends on the Spot Rate on the Investment opening date. It may be equal to or shifted (up or down) versus the Spot Rate, as requested by the client. Shifting the Strike Rate reduces the investment risk but does not eliminate it.
If, on the Investment Maturity Date, the Base Currency depreciates versus the Alternate Currency, as predetermined, the Investment Amount and the Interest Amount will be paid in the Base Currency.
If, on the Investment Maturity Date, the Base Currency appreciates versus the Alternate Currency, as against to what has been predetermined, the Investment Amount and the Interest Amount will be paid in the Alternate Currency translated at the Strike Rate.

Dual Currency Investment in a few simple steps

Choose your currency pair

Dual Currency Investment can be opened in PLN, EUR, USD, GBP or CHF. Dual Currency Investment is opened in the Base Currency that is expected to depreciate against the Alternate Currency.

Choose your investment term

Dual Currency Investment can be opened for 1 week, 2 weeks, 3 weeks, 1 month, 5 weeks, 2 months, 3 months, 6 months.

Choose your Strike Rate

You set the Strike Rate at which the Base Currency will be converted into the Alternate Currency. Strike Rate can be equal to Spot Rate on the investment opening day or “shifted” from 0.001 to 0.30.

Interest Rate

Interest rate is agreed upon the investment outset and it depends on the selected currency pair, Investment Period and Exchange Rate.

Possible scenarios

The Reference Rate is compared versus the Strike Rate on the Settlement Day. On the Investment Maturity Day, the Dual-Currency Investment is delivered:

  • in the Base Currency if the Base Currency depreciated
  • in the Alternate Currency if the Base Currency appreciated

Before deciding to open the Dual Currency Investment, please read the Important Information section which contains information about fees and the product-associated risks.

Check out Dual Currency Investment simulation.

If you are interested in the Dual Currency Investment, visit our branch and sign the agreement. To open the first investment, visit one of our branches or contact CitiPhone. To open the next investment, choose the way that is the most convenient to you:

In Citibank Online

Log on to Citibank Online

In CitiPhone

Call (+48) 22 692 2484

Important Information

Dual-Currency Investments are available only to Citibank Personal Account holders. The product is not available to U.S. citizens. Depending on the difference between the exchange rate and the current purchase rate of the Base Currency on the Investment Maturity Day, the return on investment delivered in the Base Currency may be lower or none. If the Exchange Rate differs from the current purchase rate of the Base Currency, the amount received in the Base Currency may be lower than the amount originally invested.

The above examples of dual currency transactions are only shown to help better understand how the investment product works and they are not an offer or solicitation of an offer in the meaning of Article 66 of the Civil Code. For details of the investment offer, please visit our Citigold branches. The nominal value of the Dual Currency Investment is covered by the statutory fund guarantee system Under the Bank Guarantee Fund Act of December 14, 1994 (Journal of Laws of 2009, No. 84, item 711, as amended).

The guarantee amount is the PLN equivalent of EUR 100 000 at the average rate of the National Bank of Poland as of the date on which the conditions of the guarantee are met. The above amount sets the maximum amount of claims of a deposit holder against the BFG, irrespective of the amount and a number of accounts used to maintain the funds or the amount of receivables from this specific bank. The BFG’s guarantee is not a guarantee of earning profits from the Dual Currency Investment.

Dual Currency Investments are exposed to investment risk, including the risk of loss of part of the invested capital. Before making any decision about this investment, you should learn about the main risks associated with this product that have been referred to in detail in: MIFID information leaflet

Fees

When buying a Dual Currency Investment, there is a product-embedded margin involved. The bank’s margin embedded in the product depends on the investment option selected and from time to time is presented as a percent of the Investment Amount per year. For margin-related details, please ask your Relationship Manager.

In the event when the client terminates the Dual Currency Investment prior to the maturity date, he/she will incur the costs including the option fee connected with reversing the option transaction. For more information on termination costs, please read the Investment Product Regulations or ask your Relationship Manager. The client who terminates the Dual Currency Investment prior to the maturity date shall not be entitled to receive the investment Interest.

Taxes

The profits from Dual-Currency Investment Interest disbursed to individuals who do not conduct non-agricultural business activity are subject to 19% tax rate. The tax is collected and paid by the Bank. Tax regulations may be subject to change. Any profits in foreign currencies shall be converted into PLN applying the rates as provided in appropriate tax regulations.

Important Documents:

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