Option
(Updated at 10:8, 8/9/2010)

Individual customers can buy / sell foreign currencies directly at Agribank when committed to comply with current regulations of Vietnam on foreign exchange management.

Product explanation:

 

-          An Option Foreign Exchange transaction presents a financial currency contract giving the option buyer the right, but not the obligation, to purchase or sell a specific FX spot contract (the underlying) at an agreed upon exchange rate (the strike rate) on or before a specific future date (the expiry date), i.e. if the option buyer exercises his rights, the seller has the obligation to purchase or sell the contract amount of foreign currency at the agreed upon exchange rate.

 

Benefits

 

-    Select price on demand
-    Perceived risks, costs anticipated
-    Unlimited profit potential
-    Especially suitable for uncertain cash flows

-          Currency Option enables customers to proactively plan for choosing the most profitable sale or purchase plan: either make the right choice if market rates change adversely, or not exercise their rights and make the sale or purchase at the market rates if market rates are better than rates in the option contract.

 

How to apply

 

-          Customers use USD to buy the bank's foreign currency through Foreign Exchange Spot trading must present documents to provide sufficient information about the purpose, amount and type of currencies involved, time of payment according to the current regulations on foreign exchange management and a commitment to use the foreign currency purchased in accordance with purposes prescribed in the regulations on foreign exchange control of Vietnam.

-          Customers complete the Option Foreign Exchange contract

 

Fees

 

-          Fees apply according to current Schedule of Fees and Charges of Agribank

 

Delivery channels

 

-          Agribank branches/transaction offices.

 

Technology applied

 

-          Agribank uses automated accounting system.

Applied at Operations Centre of Agribank