Your foreign exchange specialist. FX Order Watch

Transcription

1 Your foreign exchange specialist.

2 Are you exposed to more than one currency, but don t have the time to manage FX rates? allows you to fix the rate at which you exchange currencies. It gives you the possibility to choose the FX rate you prefer to have for your currency exchange. You tell us the currencies and preferred rate, and we ll monitor the FX rate changes. If your rate is met, we ll immediately make the trade on your behalf.

3 You set the rate, we do the rest has been designed with our busy clients in mind, because we know you want to make the most out of your money, but you don t have the time to study the financial markets on a daily basis. This service enables you to benefit from our expertise, and to potentially take advantage of currency opportunities as and when they happen. Set your own exchange rate so you make the trade you want, at the level you desire Choose your own term, so when you place a trade you know it will only happen within an agreed timeframe Change or cancel your order at any time, for instance, when the FX market moves suddenly in an unfavorable direction. Diversify your assets across currencies. Exchange between the following currencies: United States Dollars (USD) British Pounds (GBP) Euros (EUR) Japanese Yen (JPY) Swiss Francs (CHF) Canadian Dollars (CAD) Australian Dollars (AUD) New Zealand Dollars (NZD) Professional Guidance United Arab Emirates Dirhams (AED) Our dedicated Treasury Sales Officers can guide you on our service. They will support you with updates on foreign exchange markets and Citi Analysts foreign exchange forecasts, to help you make decisions on your currency transactions. How it works Order Types Key Contact Terminology Us Contact Us

4 How it Works You can setup your preferred rates yourself on Citibank Online / or with the support of your relationship manager. It s a simple 3 step process: Step 1: Sign on to Citibank Online Step 2: Select the details of your transactions a. The order type b. The rate you prefer (called Watch rate ) c. The time you prefer to keep the order active Step3: Confirm the details of the transaction. We then monitor the currency markets 24 hours a day, and if the exchange rate hits your agreed level, we will immediately make the trade on your behalf. The exchange rate will be the customer rate which includes the applicable exchange commission Citi applies. The amounts that have been converted are credited to your account but may not be available until the next business day, depending on the time of the transaction execution.

5 Order Types Simple order Simple Order where you set your preferred rate at which you want to sell or buy a currency and we make the transaction if the currency reaches your desired level within the timeframe. Sell order To convert one currency to another at a rate higher than the prevalent market rate, GBP to USD in this example. Rate Buy order To convert one currency to another at a rate lower than the prevalent market rate, USD to GBP in this example. Watch Rate Customer Rate (Including the commission of the bank) Market Rate Order execution Citibank FX Commission Rate Order date Time Market Rate Customer Rate (Including the commission of the bank) Watch Rate Order date Citibank FX Commission Time Order execution One-cancels-other order You place two orders at the same time. Whichever target rate is hit first, that transaction is executed and the other order is automatically cancelled. If neither target rate is hit by the end of the term the order expires. Rate Watch Rate Customer Rate (Including the commission of the bank) Order execution Citibank FX Commission This example, including the indicative Exchange Rates & FX Commission, are for illustrative purposes only. Market Rate Watch Rate/Stop Loss Order Cancelled Order date Time

6 Key Terminology Alternate Currency this is the currency (selected by you) which you will receive if an Order is executed. Commission this means the spread applied by us and which will be disclosed to you by the Treasury Sales Officer / Treasury Specialist prior to placing an Order. In case of booking trades on Citibank Online, the difference between the Watch Rate and the Customer Rate will reflect the Commission. Customer Rate this is the Watch Rate less any Commission and represents the effective rate you will receive when the Order is executed. Original Currency this is the currency (selected by you) which will be exchanged if an Order is executed. Order an order placed by you for foreign exchange in which you specify the Original Currency, the Alternate Currency, the Transaction Amount, the Tenor and the Watch Rate or Customer Rate. Market Rate this is the live spot market exchange rate for the currency pair you have selected as published by Reuters. Note that this rate may differ from live rates published by other service providers. Transaction Amount this is the amount which you choose to allocate to an Order.

7 Tenor this is the period during which your Order remains active for watching in accordance with your instructions and these terms and conditions. Watch Rate this is the target exchange rate selected by you at which you wish the Order to be executed. Please refer to the General Terms and Conditions applicable to your Account. Here are the codes of the various Orders that can be placed, and their respective expiry times (based on Local UAE time): Expiry Code Description Comments GTD Good Till Day Order expires at 6 AM (UAE time) Good for 1 Day next International Business Day. GTW Good Till Week - Order expires at 10 AM (UAE time) on the first Good for 1 week International Business Day after 1 Week. GTM Good Till Month Order expires at 10 AM (UAE time) on the first Good for 1 Month International Business Day after 1 Month. GTX User Defined Expiry Order can be placed based on a specific Date and Time as required GTC Good till Cancel

8 Contact Us Financial Centers Dubai Marina Heights, Marina Heights Properties, Dubai Marina, Dubai, Al Rigga Palace, Al Maktoum Street, Dubai, Jumeirah Beach Road, Dubai, Jebel Ali Limitless - The Galleries, Building No CMO 2, Unit 2.3, Jebel Ali, Dubai, Abu Dhabi Al Heel Tower, 26th Street, Al Khalidiyah, Abu Dhabi, Sharjah Safeer Mall, Main Dubai - Sharjah Road, Sharjah , Branches Dubai Al Wasl Branch, Sheikh Rashid Road, Next to Wafi City, Dubai , Citibank House, Khalid Bin Al Waleed Street, Bur Dubai, Dubai , Abu Dhabi Prestige Tower # 17, Near Mazyad Mall, MBZ City (Mohammed Bin Zayed City), Mussafah, Abu Dhabi (Commercial) /13 Al Khyeli Building, Corner of Al Falah and Najda Street, Abu Dhabi Sharjah Al Owais Building, King Abdul Aziz Street, Sharjah, /118 January 2015 (E) For more information, please contact your Relationship Manager or visit your nearest branch. Important information: Terms & Conditions: These terms and conditions form part of our Agreement with you in the event that you place an Order using the service and should be read together with the General Terms and Conditions applicable to your Account with Citibank NA UAE, P.O. Box 749, Dubai, United Arab Emirates ( Citibank ). You should read these documents carefully as they contain important information on which we intend to rely. This is a Non-Advised product. Citibank, N.A., UAE does not offer any recommendation for specific transaction with currency pairs, tenors and exchange rates (all 3 combined). Before you can place an order you must hold cash accounts with us in the original currency and the alternate currency. In addition, your cash account in the original currency must hold sufficient funds to cover the transaction amount. All orders are subject to a minimum transaction amount of USD 10,000 (or currency equivalent) and on Citibank Online a maximum transaction amount of USD 500,000 (or currency equivalent). For placing any order above the maximum limit of USD 500,000 (or currency equivalent) contact the Treasury Sales Officer / Treasury Specialist. When you place an order, we will place a hold over the transaction amount in the original currency until the order is executed, cancelled or has expired. This means that the transaction amount will not be available to you during the tenor of the order. All orders will be subject to a commission payable by you to Citi. Commission refers to the spread applied by Citibank, N.A., UAE and which will be disclosed to you by the Treasury Sales Officer / Treasury Specialist prior to placing an Order. In case of booking trades on Citibank Online, the difference between the Watch Rate and the Customer Rate will reflect the Commission. You may specify any watch rate for an order, subject to a minimum cushion of 30 Price Interest Points - PIPS (meaning that the watch rate specified must be a minimum percentage above or below the current market rate at the time the order is placed). If you subsequently change the watch rate for an order, the new watch rate you specify will also be subject to this cushion (calculated against the market rate at that time). The size of the cushion may vary from time to time depending on currencies selected and market volatility. If you wish to change or cancel an order prior to execution you can do so. Orders will remain live until you have received confirmation that the order has been cancelled. Orders may not be cancelled or changed once executed. When an order is executed, the transaction amount will be credited to your cash account in the alternate currency. This normally happens immediately, but in any event no later than the second business day after execution. It is not possible to roll transactions over or otherwise place a new order using the transaction amount without having first received the transaction amount into your cash account. Please note, it is not possible to enter forward transactions (where the execution price is pre-determined regardless of market movements) using the service. All orders are executed at spot (that is at the price available in the market at the time the transaction is executed). Please bear in mind that when the exchange rate to convert a foreign currency to your original base currency fluctuates due to market conditions, there is a risk of loss of principal due to an exchange rate loss. The amount you receive at maturity, when its value is calculated in your original base currency, may be lower than the principle you originally deposited. Regardless of the condition of foreign exchange rate fluctuations, there is a risk of loss of principle because the customer rate applied for converting a foreign currency back into your base currency includes Citi s foreign exchange commission. Once the order is matched or executed, the product cannot be cancelled and the funds placed are not available for further transactions or withdrawal until the order is executed, cancelled or expired. Occasionally, for reasons outside our control, it may not be possible to execute an order when the market rate reaches the watch rate during the tenor. These reasons include but are not limited to market volatility or the liquidity of a particular currency may mean that the order cannot be matched in the market at the watch rate selected by you. We shall not be held liable for any loss, cost or claim arising out of or in relation to such circumstances. The order will remain live until the expiry of the tenor. Fees and Commission: When the exchange rate to convert a foreign currency to your original base currency fluctuates due to market conditions, there is a risk of loss of principal due to an exchange rate loss. The amount you receive at maturity, when its value is calculated in your original base currency, may be lower than the principal you originally deposited. Regardless of the condition of foreign exchange rate fluctuations, there is a risk of loss of principal because the customer rate applied for converting a foreign currency back into your base currency includes Citi s foreign exchange commission. Once the order is matched or executed, the product cannot be cancelled and the Funds placed are not available for further transactions or withdrawal until the order is executed, cancelled or expired.