Treasury
SAIGONBANK offers forex dealing transactions in various key currencies such as USD, EUR, GBP, HKD, CHF, JPY, AUD, CAD, and SGD for the purpose of international settlement. It also provides various instruments to help customers with their effective hedging against the exchange rate fluctuation. Those include:
Spot
Forward
Swap
Currency option
1. Spot
Features:
Spot is a forex trading to meet immediate orders for purchase and sale of a certain amount of a foreign currency at the spot rate defined by transaction point of time and settlement is to be made within 2 working days.
Subject clients: enterprises eligibly operating in the territory of Vietnam.
Currencies of transaction: USD, EUR, JPY, AUD, SGD, CAD, GBP, CHF, HKD, CNY.
In case payment made later: you must deposit part of the transaction amount specified by SAIGONBANK and provide additional deposit if the prevailing exchange rate adversely fluctuates against the defined closing rate, exceeding the regulated rate of SAIGONBANK.
Transaction procedure:
Foreign currencies sold from corporate clients’ accounts: selling authorized order made by corporate clients must be sent to SAIGONBANK Accounting Department stating clearly the amount to be sold and the corresponding VND account number for funds transfer.
Corporate clients need to buy foreign currencies for various eligible purposes such as foreign trade, service settlement and foreign loans payment.
Corporate clients need to fill in the Foreign Currency Purchase Application form with eligible purpose, amount and present to our Trade Finance Department all related papers in compliance with the prevailing foreign exchange control regulations.
Specially, our Cross - currency payment services of SAIGONBANK will feed the client needs to purchase rare foreign currencies such as Korea (KRW), Indonesia (IDR), India (INR), Cambodia (KHR), Taiwan (TWD), Russia (RUB) for international payments
2. Forward
Features:
Forward is an agreement between two parties to exchange (sell and buy) a certain amount of a foreign currency at a fixed exchange rate and settlement is to be made at a future date for forex hedging, cost and profit estimation to ensure the future settlement capability.
Subject clients: enterprises eligibly operating in the territory of Vietnam.
Forward rate: the exchange rate is closed on the transaction date and payment on the contract date.
Terms vary from 3 days to 365 days.
Security deposit: Deposit from 0-10% of the total contract value and additional deposit when exchange rate adversely fluctuates exceeding the threshold rate defined by SAIGONBANK to ensure the transaction.
Transaction procedure:
Customers can directly contact our Treasury Department to obtain details on exchange rate, term, amount, date and method of settlement, and deposit before signing Forward contract.
Corporate customers applying for SAIGONBANK’s Forward transactions need to present all the related documents providing sufficient information on the purpose, foreign currencies and amount necessary for settlement and date of payment in compliance with the prevailing foreign exchange control regulations.
3. Swap
Features:
Swap is the simultaneous purchase and sale of one currency for another (only two currencies are dealt in a Swap transaction). In this transaction, there are two different maturity dates, and exchange rates are fixed on the contract signing date.
Subject clients: enterprises eligibly operating in the territory of Vietnam.
Terms vary from 3 days to 365 days.
Security deposit: Deposit from 0-10% of the total contract value.
Advantages:
Ensuring corporate solvency and feeding your needs of capital flexibly and efficiently balanced through spot purchase of a foreign currency by your temporarily idle money. Given a forward contract signed with SAIGONBANK, you are able to get back your initial currency.
Providing hedging against exchange rate fluctuation risks and taking advantage of interest rate difference between these two currencies to earn profit.
Transaction procedure:
Customers can directly contact our Treasury Department to obtain details on exchange rate, term, amount, settlement date and mechanism, deposit… and sign SWAP contract.
No supporting documents proving the purpose of currency purchase is required.
4. Currency option
Features:
Currency option transaction is a currency exchange transaction between the option buyer and the option seller, in which SAIGONBANK is the option seller and the customer is the option buyer.
Option buyer has the right but no obligation to buy / sell a specific amount of foreign currency at a fixed rate for pre-determined period, agrees to pay the premium upon transaction. When the buyer executes his option, option seller has the obligation to sell (or buy) the amount of foreign currency at the exchange rate agreed in the contract.
Currency option can be conducted between foreign currencies only (EUR/USD, AUD/USD, USD/CHF etc), not between a foreign currency and VND.
Premium is paid by the buyer in an Option contract to the seller. Option premium will depend on factors such as the amount of foreign currency, applied exchange rate, prevailing spot exchange rate, contract term, and diverse provisions defined by SAIGONBANK.
Contract validity is the period of the option to be executed upon request of the option buyer, defined as at the signing date of the subject contract until before 11.00 am (GMT+7) of the maturity date.
Advantages:
Meeting the needs of customers to hedge risks from exchange rate and offering them with opportunity to earn from prevailing rate fluctuations, and to obtain payments in foreign currency in the future.
Customers can estimate the cost for hedging and investment, and may refuse to conduct transactions when exchange rate fluctuates adversely against their prior agreement.
Option types: Call Option and Put Option.
Option Styles:
American Option: Customers can execute their options at any time within the validity of the contract.
European Option: Customers can only execute their options at maturity date of the contract.
Transaction procedure:
Proof of legal entity to be sufficiently submitted as required.
Entire commitment to pay the premium sufficiently and on time per provisions of SAIGONBANK.
No supporting documents required.
Customers can directly contact our Treasury Department to obtain details on exchange rate, term, amount and option types and styles.
Entire commitment to carry on sufficient settlement on time per provisions of SAIGONBANK
Given the aforementioned agreement, both parties are entitled to signing the option contract.
Contact:
For further information, please directly contact our Treasury Department.
Tel: 08.39143183 (ext: 147, 153, 266).
