Spot Contract |
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It allows for the setting and delivery of your foreign exchange
transactions within two business days.
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Forward Contract |
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It allows you to lock-in an exchange rate to buy or sell a
specific amount of foreign currency for delivery on a
future date. You may also choose to settle on any day
within a pre-agreed time period.
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Non Deliverable Forward (NDF) Contract |
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The NDF provides protection for companies that have currency exposure
with emerging market countries that have currency restrictions.
The NDF is similar to a forward contract. The key difference is
that settlement of the contract is made, not by actual delivery
of the currencies, but by taking the difference between the
agreed rate and an official "fixing rate" to determine the net
settlement amount in US dollars. The USD settlement provides
protection in the volatility of emerging market currencies, such
as Chinese Yuan and New Taiwanese Dollar.
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Foreign Currency Option |
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An agreement where the option buyer has the right, but not the
obligation, to buy or sell foreign currency at a specified price
on a specific date by paying an option premium. Currency Options
provide protection and flexibility as it allows buyer to take
advantage of favorable movements in the exchange rate.
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Foreign Currency Time Deposit 1 |
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If you are thinking of diversifying your existing investment
portfolio, our foreign currency time deposit can be an
alternative investment. It allows you to take
advantage of the interest rates and any favorable
fluctuations in currency exchange rates. At Cathay Bank,
we offer a wide choice of foreign currencies at
competitive rates to meet your investment needs. Our
flexible terms are from 1 month to 12 months. You can
easily open a time deposit with no transaction or commission
fee. Foreign currency time deposits are FDIC insured 2.
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Multi Currency Call Account (MCA) |
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It is a foreign currency denominated account in a wide variety
of currencies. This account is ideal for customers who have
foreign currency funds and do not want to convert them to US
dollars. Opening a Multi Currency Call Account gives you the
flexibility to receive and to make payments in foreign
currency either in the form of a foreign draft or outgoing
wire. Multi Currency Call Accounts are FDIC insured 2.
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Foreign Currency Banknote (Cash) Exchange and Foreign
 Currency Travelers Checks |
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If you need to exchange a foreign currency banknote for
your next vacation or business trip, we offer currency
exchange service for more than 60 major foreign currencies.
We also buy/sell major currency travelers checks at a
nominal transaction fee. At Cathay Bank, we are
dedicated to providing competitive exchange rates along
with efficient and personal services. Our most popular
exchange foreign currencies for banknote exchange are:
| Australian Dollar |
Japanese Yen |
| British Pound |
Mexican Nuevo Peso |
| Canadian Dollar |
New Taiwanese Dollar |
| Chinese Yuan |
New Zealand Dollar |
| EURO |
Singapore Dollar |
| Hong Kong Dollar |
Swiss Franc |
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With an extensive international correspondent bank network.
Cathay Bank represents invaluable resources for your
foreign exchange and investment needs. For more information,
please call our Foreign Exchange Department at (213) 346-3730
or Foreign Exchange service hotline at (866) 228-4299; or
visit any Cathay Bank Branch for details.
1 Fluctuations in exchange rates of foreign currencies
may reduce principal.
2 FDIC Deposit Insurance is determined in the account
of the deposit denominated in the foreign currency. If the
Bank fails, the value of the deposit will be determined using
the rate of exchanges as of the date the bank is closed. |
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