Dual Currency Deposit


DEFINITION of 'Dual Currency Deposit'

A fixed deposit with variable terms for the currency of payment. Deposits are made in one currency, but withdrawals at maturity occur either in the currency of the initial deposit or in another agreed upon currency.

BREAKING DOWN 'Dual Currency Deposit'

This is a deposit that creates a foreign exchange rate risk for the investor. Similar to a currency swap, you can be rewarded or punished for the risk taken.

  1. Currency

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    A derivative contract through which two parties exchange financial ...
  3. Exchange Rate

    The price of a nation’s currency in terms of another currency. ...
  4. Dual Currency Bond

    A debt instrument in which the coupon and principal payments ...
  5. Dual Currency Issue

    A bond that pays interest in one currency but pays the principal ...
  6. Currency Swap

    A swap that involves the exchange of principal and interest in ...
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