Foreign Exchange

Bank of China - New York actively participates in the U.S. foreign exchange market, money market and capital market. We enjoy superior business relationships with many major U.S. and international financial institutions to provide you with sound business and consulting services in the fields of foreign exchange and funds management.

Foreign Exchange and Funds Department business includes FX Spot, Forward and Swap transaction service, local and foreign currency fund management.

For customers doing business in China, we provide USD/CNY Non-Deliverable Forward (NDF) Contracts to hedge their currency risk exposure.

A NDF provides the same benefit as a traditional forward foreign exchange contract. These types of contracts are used for currencies where it is difficult to take actual delivery of the currency.

On the specified future date, an exchange of the two currencies involved will take place, since the actual foreign currency is not delivered, the net US dollar is settled with a compensating payment made or due based upon the difference between the NDF contract rate and the exchange rate prevailing at maturity. NDFs are commonly quoted for time periods of one month up to one year, and are normally quoted and settled in U.S. dollar.

Contacts:

212-308-9233