FOREIGN EXCHANGE

PRIVATE SERVICES

www.megabanking.org

LOW-KEY, HIGH-QUALITY PERSON LIFTS THE OTHER END OF OUR BALANCING SCALE TO THE HIGHEST LEVEL THROUGH 'CUSTOMIZED PROJECTION SKILLS' AND MAKE CAPITAL FLOWS GROW FAST WITH FREE CIRCULATION.


FOREIGN EXCHANGE

A) Forward parity foreign exchange means the customer and our AGENCY BANKs sign a forward foreign exchange contract, in which delivery date, currency and exchange rate, and transaction direction and amount for multiple transactions are specified. In addition, currencies, transaction directions and delivery exchange rates for such transactions are identical. That is, on each delivery day, the customer conducts foreign exchange delivery with the banks as per the unified exchange rate.

B) Incremental foreign exchange interest rate swap refers to the financial agreements in which customers and our AGENCY BANKs commit to calculate and exchange interest according to the agreed principal of foreign exchange and interest rate in a coming period. The customer pays incremental fixed interest rate of each issue to the banks and collects floating interest rate from it. The counterparties don’t exchange the principal, which also serves as the basis for interest calculation. At present, the floating interest rate of foreign exchange interest rate swap includes 1-month LIBOR, 3-month LIBOR and 6-month LIBOR.

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