Skip to Main Content
  • CIBC.com
  • CIBC Private Wealth
  • CIBC Websites
  • Client Login
  • Français
Français
  • Home
  • About us
    • The Investment Team
    • Approach
    • Contact us
  • Investment Management
    • Investment Thesis
    • Investment Values
    • The Dixon difference
    • Investment Management Process
  • Portfolios
    • Low-Risk Portfolio
    • Income Portfolio
    • Balanced Portfolio
    • Growth Portfolio
  • Derivative Strategies
    • Dual Currency Deposits
    • Covered Call
    • Sell Put
    • Foreign Currency Forward
  • Wealth Planning
    • Planning Services
    • Tax Planning Strategies
  • Market insights
    • Macro Blog
  • CIBC.com
  • CIBC Private Wealth
  • CIBC Websites
  • Client Login
 CIBC Private Wealth, Wood Gundy  CIBC Private Wealth, Wood Gundy

James Dixon

  • Home
  • About us
    • The Investment Team
    • Approach
    • Contact us
  • Investment Management
    • Investment Thesis
    • Investment Values
    • The Dixon difference
    • Investment Management Process
  • Portfolios
    • Low-Risk Portfolio
    • Income Portfolio
    • Balanced Portfolio
    • Growth Portfolio
  • Derivative Strategies
    • Dual Currency Deposits
    • Covered Call
    • Sell Put
    • Foreign Currency Forward
  • Wealth Planning
    • Planning Services
    • Tax Planning Strategies
  • Market insights
    • Macro Blog
 

Dual Currency Deposits

Dual Currency Deposits

Email Email
Telephone Number Tel

WHAT IT IS

A Dual Currency Deposit (DCD) is a hybrid product that combines an investment strategy and a foreign exchange component.

 

HOW IT WORKS

1. A cash deposit is made in one currency (CAD or USD) for a specified term.

2. The yield and a foreign exchange rate against the other currency (USD or CAD) is agreed upon.

3. At maturity, the deposit and the earned interest is returned in either the original currency or converted to the other currency at the agreed upon rate.

4. Interest is earned irrespective of whether conversion takes place

 

ADVANTAGES

1. The potential to receive an exchange rate that is better than the prevailing spot/forward rate.

2. Earn an enhanced yield

 

RISKS

1. Although the conversion rate is better than the prevailing spot rate at the start date of the deposit, at expiry it may be less favorable than the prevailing spot rate.

2. The deposit is a fixed term deposit. It cannot be withdrawn or converted prior to expiry.

3. The currency returned is determined based on whether the DCD was converted.

 

WHO SHOULD USE THE DCD

1. Clients with large cash positions looking for an enhanced yield and are comfortable with conversion at the agreed rate.

2. Businesses looking for high returns that are targeting specific FX rates.

 

  • Rates
  • FAQ
  • Agreements
  • Trademarks & Disclaimers
  • Privacy & Security
  • CIRO AdvisorReport
  • Accessibility at CIBC
  • Manage Cookie Preferences
  • Cookie Policy
 Canadian Investment Regulatory Organization  Canadian Investor Protection Fund

CIBC Private Wealth” consists of services provided by CIBC and certain of its subsidiaries through CIBC Private Banking; CIBC Private Investment Counsel, a division of CIBC Asset Management Inc. (“CAM”); CIBC Trust Corporation; and CIBC Wood Gundy, a division of CIBC World Markets Inc. (“WMI”). CIBC Private Banking provides solutions from CIBC Investor Services Inc. (“ISI”), CAM and credit products. CIBC Private Wealth services are available to qualified individuals. Insurance services are only available through CIBC Wood Gundy Financial Services Inc. In Quebec, insurance services are only available through CIBC Wood Gundy Financial Services (Quebec) Inc.


CIBC Private Wealth services are available to qualified individuals. The CIBC logo and “CIBC Private Wealth” are trademarks of CIBC, used under license.