Best Treasury & Cash Management by Foreign Bank in China 2008 - Global Finance
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Non-USD Foreign Currency Hedging
Applicable Customers
Importers and exporters with account payables or receivables in non-USD foreign currency.
Product Advantages
Customized solutions to meet customers' various risk tolerances.Protect non-USD foreign exchange fluctuations.
A battery accessory manufacturer exports to overseas buyers. Transactions are settled in USD, Euro and Japanese Yen. Annual Sales is RMB 200 million.
Customer's Difficulties and Needs
Unexpected exchange rate volatility between USD and Yen increases the uncertainty of return, and reduces the company's profit margin.
Solutions at Citibank
1. Traditional Foreign Exchange Forward
Customer negotiates and books transactions with overseas buyers according to the forward exchange rate quoted by Citibank from 1 to 12 month ahead of time. Then the customer enters into a forward contract with Citibank, and on the value date, settles with Citibank using the stipulated forward rate.Advantage: The customer is able to lock the exchange rate and return in advance.
2. Structured Hedging Solution
Through customized solution of forward, option, or structured options in proportion to exchange rate to achieve higher rate than the forward rate.
Advantage: Customer satisfies its risk management requirement while enjoying flexibility and better exchange rate.
From Monday to Friday 9:00-18:00, please call: 800 820 6608 (toll free within China) (8621) 2896 6965 (for overseas)
