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Foreign Exchange Business

I. Function Definition
Foreign exchange business is one of the primary ones of ICBC, and it mainly includes agency exchange funds clearance and exchange funds service, etc.

II. Product Introduction
1. Agency Exchange Funds Clearance:
ICBC provides exchange settlement and clearance services for the interbanks and non-banking financial institutions through the overseas payment systems from People’s Bank, the foreign exchange clearance accounts ICBC-opened overseas, SWIFT system, and fund remittance and transfer systems. ICBC provides customers with the payment of remittances for both outward and inward remittances and conducts exchange funds clearance for various types of foreign currencies on customers’ behalf through the imprest accounts customers-opened in ICBC clearance centers or ICBC branches. ICBC pays interests for the minimum balance in the imprest accounts that is more than the minimum balance specified in the agreements, the interests rates will refer to the ones defined in LIBOR, and will be settled through two-party discussion. Meanwhile, ICBC can provide customers with exchange funds management business, including structured deposits.

2. Foreign Exchange Funds Service:
Applying for various financial tools, especially all types of derivative financial tools and their combinations, ICBC can assist interbanks, under the condition of risk control, to realize the goals of asset-value retaining and adding. ICBC's exchange funds business primarily includes exchange trades, agency service of exchange settlement and sales, agency financing service for customers, and exchange risk management for the customers.

III. Target Client
Financial institutional customers and the interbanks with corresponding qualifications

VI. Application Condition
The interbanks with corresponding qualifications and financial institutional customers are all eligible for applying.

V. Solutions
1. Agency Foreign Exchange Clearance:
ICBC is the largest clearance bank in China and possesses the most advanced systems for both domestic and overseas funds remittance and transfers and internal settlements, and is currently able to offer the clearance service for all freely convertible currencies worldwide.

2. Foreign Exchange Funds Services:
(1) Agency foreign exchange trading service for customers: In order to meet the payment requirements of payments at sight or usance payments for different currencies form interbanks, ICBC can accept the trust requirements from interbanks to conduct both spot and forward foreign exchange trading. The settlement and delivery of spot transactions will be conducted in two business days of the closing date; and the ones of forward transactions will be done in a given specific time (more than two days after the closing date) in the future based on the given currencies, amounts, and exchange rates. ICBC provides foreign exchange trading business for multiple freely convertible foreign currencies such as USD, EURO, GBP, JPY, CHF, AUD, SGD, DKK, SEK, CAD, and NZD, etc.

(2) Agency foreign exchange settlements and sales services for customers: as a state-foreign exchange-designed bank, ICBC can provide agency foreign exchange settlements and sales services for the interbanks don’t have required service qualifications. ICBC can conduct foreign exchange settlements and sales services for 14 currencies in its daily announced posted exchange rates, including USD, HKD, JPY, EUR, GBP, CHF, CAD, AUD, SGD, DKK, NOK, SEK, MOP, and NZD. The exchange quotations ICBC posted outward include five marked prices, i.e. exchange intermediate rates, buying rates (spot exchange settlement prices of banks), selling rates (spot exchange sales prices of banks), currency notes buying rates (exchange settlement prices against currency notes of banks), and currency notes selling rates (exchange sales prices against currency notes of banks).

(3) Agency foreign exchange financing services: the primary tools ICBC uses to conduct agency foreign exchange settlements and sales services for customers are various structured deposits, i.e. based on the general foreign exchange deposits, ICBC connects the final earnings from the deposits to one or price performance of multiple financial products in order to provide the interest rates higher than general time deposits. The connected financial products upon the agreements could be foreign exchange rates, interest rates, stocks, indexes, commodities, and bonds, etc.

(4) Agency foreign exchange risk control service for customers: ICBC agency foreign exchange risk control service for customers refers to the one that based on the financial management goals from interbanks, applying various financial tools, especially all types of derivative financial tools and their combinations, assists the interbanks to adjust projected revenue and debt structures, makes every effort to let future incoming cash match outgoing one in terms of currency types and terms to protect the exchange risks due to changes from domestic economic environments, exchange rates, and interest rates, and reasonably control financial costs.

VI. Features
ICBC always takes achieving internationalization as one of its strategic goals of development, and places international service on the front position of the overall bank development. ICBC international business has the advantages of long history, fine credit, mass overseas branches and agency banks, and solid capital support, etc.

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