Asian Currency Investment
The Asian markets are on the move and opportunities abound for savvy investors. That is why at Standard Chartered, we have made available to you an innovative product that helps you to benefit from the growth of emerging economies. Asian Currency Investment allows you to participate in the emergence of Asian currencies, which may offer potential capital gains and higher interest rates than traditional deposits. If you are interested in investing in the emerging market currencies, this is the ideal investment opportunity for you.
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What is an Asian Currency Investment?
Asian Currency Investment (ACI) is a structured investment with an embedded Non-Deliverable Forward option.
It allows you to hedge exchange rate exposures of non-deliverable emerging market currencies against the US dollar.
The currencies available are:
  • Chinese renminbi
  • Indonesia rupiah
  • Indian rupee
  • New Taiwan dollar
  • Malaysian ringgit
 Why now?
The decision to unpeg the Chinese renminbi and the Malaysian ringgit from the US dollar and uncertainties in the foreign exchange market have created opportunities for you to take advantage of the currency movements of these emerging markets.
What are the benefits?
  • Enjoy higher interest rates than conventional fixed deposits
  • Receive potential gains from favourable currency movements
  • Allows customisation for greater control over your investment
  • A choice of five non-deliverable Asian currencies
  • Freedom to choose a tenor of investment ranging from 1–6 months
How do I invest?
With ACI, you have even greater control of your money as you are able to customise your investment according to your view of the currency market. To invest, simply:
  1. Determine your US dollar deposit amount (minimum of USD200,000)
  2. Select the Asian currency that you are hedging against
  3. Choose the tenor that you will be trading (from 1 to 6 months)

A non-deliverable forward rate will then be determined together with the interest rate that will be paid out to you at the end of your tenor. Upon maturity*, you will get your principal, interest and potential capital gain or loss in US dollars.
*There will be different fixing times for different currencies on the fixing date.
How does it work?
To demonstrate how ACI works, we make the following assumptions:

Your Investment Capital: USD200,000
Currency to hedge against: Chinese Renminbi
Tenor: 1 month
Non-deliverable forward rate: 7.95
Interest rate: 5% p.a. (the equivalent of USD833.33 per month)
We illustrate three possible scenarios:

Scenario 1: Assuming the USD / RMB is at 8.00 at fixing date and time.
  • You exceed the non-deliverable forward rate and make a nett gain
  • Your principal amount is exchanged on fixing date and you get back USD201,257.86
Captial gains (A) USD1,257.86
Interest gains of 5% p.a. (B) USD833.33
Total nett gain (C) (Where C = A + B) USD2,091.19
Your total payout (C + USD200,000) USD202,091.19
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Scenario 2: Assuming the USD / RMB is at 7.93 at fixing date and time.
  • You do not reach the non-deliverable forward rate but still make a nett gain
  • Your principal amount is exhanged on fixing date and you get back USD199,496.86
Captial gains (A) -USD503.14
Interest gains of 5% p.a. (B) USD833.33
Total nett gain (C) (Where C = A + B) USD330.19
Your total payout (C + USD200,000) USD200,330.19
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Scenario 3: Assuming the USD / RMB is at 7.90 at fixing date and time.
  • You do not reach the non-deliverable forward rate and make a nett loss
  • Your principal amount is exhanged on fixing date and you get back USD198,742.14
Captial gains (A) -USD1,257.86
Interest gains of 5% p.a. (B) USD833.33
Total nett gain (C) (Where C = A + B) -USD424.53
Your total payout (C + USD200,000) USD199,575.47
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Disclosures and disclaimers
Asian Currency Investment is not a deposit but an investment product. Unlike traditional deposits, Asian Currency Investment has an investment element and returns may vary. The return on Asian Currency Investment will be dependent, to at least some extent on movements in specified currency exchange rates. A wide range of factors, including national and international financial and economic conditions and political and natural event, affects currency exchange rates. The effect of normal market forces may at times be discounted by interventions by central banks and other bodies including foreign exchange controls being imposed. At times, the exchange rates and prices linked to such rates may rise or fall sharply. Such rise and fall in rates can result in a loss on the principal sum (in comparison with the amount of the base currency initially invested) if the proceeds are paid at maturity in the alternate currency. A dual currency investment involves a currency option where part or all of the interest earned on this investment represents the premium on this option. This document does not constitute any recommendation that any person enters into any transaction described or any similar transaction and must be read in conjunction with the Currency Linked Account Agreement. You may wish to seek advice from a licensed or an exempt financial adviser before making any commitment to invest in this product. In the event that you choose not to seek advice from a licensed or exempt financial adviser, you should carefully consider whether this product is suitable for you.