Dual Currency Investment

This is a high risk investment that involved exchange rate fluctuation.

It is a short term deposit that involved two currencies. One is base currency and another one is alternate currency. You place the fund on base currency at agreed interest rate for a period of two weeks or one month and expect the base currency shall not be converted at agreed strike price to alternate currency on maturity. High interest rate is the main reason to attract people to invest in this deposit but your money may get converted to alternate currency.

For example, you may put in S$50,000 as base currency (Singapore dollar) and agreed a strike price of S$/A$ 1.30 (converted to Australia dollar at exchange rate of 1.30) and interest rate of 4% for one month period (this means the base currency(S$)shall be converted to alternate currency(A$) with interest earned if the strike price of 1.30 is hit).

In Singapore, most of the banks offer this investment. you may consult your banker to understand the operation of such an investment if you are interested in this type of deposit.