Dual Currency Deposit - Example

Example 1:

Deposit amount:	50,000 USD
Base currency:	USD
Linked currency:	AUD
Minimum interest rate:	7.25% per year
Conversion Rate:	1.0138 (1AUD = 1.0138 USD)
Maturity Condition:	On the fixing date, if the exchange rate is equal to or higher than the conversion rate, the principal will be returned in USD. Otherwise, the principal will be returned in AUD. The interest payment will always be in USD.

FX situation on Fixing date	Scenario 1 AUD strengthens against USD when compared to the conversion rate on fixing date	Scenario 2 AUD remains constant against USD when compared to the conversion rate on fixing date	Scenario 3 AUD weakens against USD when compared to the conversion rate on fixing date
AUD/USD on Fixing date	1.0146	1.0138	0.9965
Interest payment	USD 342.36 (USD 50,000 x 7.25% x 34/360)
Principal repayment	USD 50,000		AUD 49,319.39 (USD 50,000 at conversion rate 1.0138)
Total proceeds in USD equivalent	USD 50,342.36		USD 49,489.13 (AUD 49,319.39 at market rate 0.9965 and USD 342.36)