ICBC can provide centralized management of foreign exchange risk all over the world based on its global network. ICBC ensures customers to effectively control the risk in exchange rate fluctuations while craving for returns.

I. Exchange Rate Risk Management
1. Forward Exchange Trading
Forward Exchange Trading refers to the delivery on an agreed future date (above two working days after the deal) according to the trading currency, amount and forward rate agreed during today's foreign exchanges trading by both parties.

2. Exchange Option
Option is a kind of financial agreement, which grant a right (not obligation) to option buyer to buy or sell a specified currency within a specified period (or after the period) according to the price set in advance.

3. Currency Swap
Currency Swap is a kind of financial agreement that the two parties exchange two different currencies within a certain agreed period.

4. Management Instrument for Structural Exchange Rate Risk
It is a risk-hedge instrument by combination of many types of financial instruments.

II. Interest Rate Risk Management
According to customers situation, ICBC uses financial derivative instruments to compose an appropriate risk-hedge instrument to help customers circumvent the interest rate fluctuations in the market.

1. Forward Rate Agreement (FRA)
Forward Rate Agreement is an interest rate agreement in which both parties lend a certain term of fund at a fixed forward rate after a certain agreed period.

2. Interest Rate Swap
Interest Rate Swap is a kind of contract to exchange future interests of assets or liabilities.