RMB Product - ICBC (Asia)
RMB Product
CNY Trade / CNH Non-trade Spot Exchange
There are two kind of RMB for spot trading – CNY (Onshore RMB) and CNH (Offshore RMB). If corporate client would like to exchange RMB for cross-border merchandise trade related with providing relevant supporting documents, client can select CNY onshore spot contract as cross-border FX exchange. For normal corporate client for non-trade related, client can use CNH offshore spot contract for RMB FX exchange.
CNY Non-Deliverable Forward (NDF) / CNH Deliverable Forward (DF)
NDF is a notional forward transaction as there will be no physical settlement of principal. At maturity, the difference between the contracted forward rate and the fixing spot rate is settled in US dollar.
Foreign Exchange Deliverable Forward Contracts can allow you to buy or sell a specified amount of one currency against another currency at an agreed exchange rate and delivery on future specific or optional dates. You can use Foreign Exchange Forward Contracts to fix the future foreign exchange rate and have easier financial planning.
CNH FX Swap
CNH FX Swap is a simultaneous purchase and sale, of identical amounts of one currency for another with two different value dates (normally spot to forward). The two parties agree a currency exchange on one day and simultaneously agree to reverse that deal on a date in the future.. That is, the two parties have the right to use the exchanged currency at a specific time.
CNY Optional Forward Deal
Tailor-Made Hedging Products to different customers to meet their specific needs’ and to hedge their FX risk.
CNH Option
CNH options are one of the ways for corporations to hedge against adverse movements in CNH exchange rates. It grants the holder the right, but not the obligation, to buy or sell currency at a specified exchange rate during a specified period of time. The buyer can either buy a call option or buy a put option. For this right, a premium is paid to the seller, which will vary depending on the notional amount of contract purchased.
RMB Non-Deliverable Interest Rate Swaps (CNY NDIRS) / RMB Deliverable Interest Rate Swaps (CNH IRS)
The CNY NDIRS involve counterparties swapping fixed-interest payments for floating-rate payments based on the same underlying notional principal, on fixed dates over the life of the contract, with the net cash settled in US dollars.
The CNH IRS refers to the financial agreement, entered into by both parties of transaction for swapping fixed-interest payments for floating-rate payment based on the same underlying notional principal,on fixed dates over the life of the contract, and will be settled in CNH.
*Investment involves risk, the price of investment products may sometimes be very volatile, the price of investment products may go down and may even become valueless. Trading investment products may not necessarily result in profit, but may result in losses.
