Dual Currency Certificate

If you want the best return on your cash and are willing to accept the risk of being reimbursed in another predefined currency, our Dual Currency Certificate fits the bill. It consists of a long position in a given currency combined with a short position on a currency option. Depending on market conditions at maturity, the repayment of your original investment and the payment of the maximum return may take place in a predefined alternative currency. This product is aimed particularly at investors with a multi-currency portfolio.

Advantages

  • Discount at issue
  • Potential return higher than that offered by the money market
  • Short lifespan
  • No brokerage fee, stamp duty or admin commission to pay
  • Custom product
  • Securitisable product
  • Guaranteed coupon (or discount)
  • Advice and monitoring provided by our Forex team
  • Possibility of investment being converted into another currency at a better rate than the spot rate at issue
CDM Vos avantages

Strategy can be adjusted at each maturity date

At maturity, our team contacts you in order to:

  • inform you about the redemption situation
  • suggest a replacement product

Sample scenario

You are holding CHF and want the best return on your cash. In return, you accept the risk that your original investment may be converted into EUR.

Investments in CHF (EUR/CHF) 

Investment currency

  • CHF

Replacement currency

  • EUR

Final measurement date

  • to be defined (2 weeks - 1 year) 

Nominal

  • CHF 500,000

Spot rate

  • EUR 1 = CHF 1.0650

Conversion rate

  • EUR 1 = CHF 1.0500

Maximum yield

  • 2% p.a.

EUR/CHF Product with CHF as the investment currency

CDM scénario échéance suisse

EUR/CHF Product with EUR as the investment currency

CDM scénario échéance euro

A moderate-risk product

  • On average, 8 out of 10 products are redeemed in their original currency.
  • The original investment may be converted at a less favourable exchange rate than the spot rate at maturity.
  • The replacement currency may go down in value. 

Specific tax status

Swiss tax

Swiss withholding tax is not applied if the product's maturity is less than one year. Gains on Dual Currency Certificates are regarded as capital gains. They do not currently constitute taxable income in Switzerland for individuals whose tax domicile is in Switzerland and who hold these instruments as part of their private assets. 

European Union withholding tax

Dual Currency Certificates are not subject to the EU withholding tax.

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