Investment Currency definition
Examples of Investment Currency in a sentence
An investor may potentially earn a higher yield with a possibility of converting the original Investment Amount in the Investment Currency to the Alternate Currency at a predetermined exchange rate (also known as the “strike level”).
The investor pays the Investment Amount in the Investment Currency on the Investment Start Date, and will receive the Repayment Amount in either the Investment or Alternate Currency or a combination of both on the Investment End Date, depending on the market spot rate of the Currency Pair at that time.
In the event the Investment Amount is converted to the Alternate Currency Amount equivalent (including accrued interest), it may be significantly less than the original Investment Amount plus interest when converted back into the Investment Currency.
One currency will be designated as the Base Currency, which is the Investment Currency, and the other, the Alternate Currency.
For a Currency Linked Investment, you may choose an Investment Currency and a Linked Currency and agree with DBS a Conversion Rate and the Tenor.