Dual Currency Deposit Account

Dual Currency Deposit (DCD) Account

DCD (Dual Currency Deposit) is a combination of a derivative transaction (an option) with a classic time deposit. The customer sells the right to buy/sell any kind of currency from the level that he/she is determined in a specified term and the bank in return pays a premium (an option premium).

For details of this and other investment products please visit any of the İktisatbank branches or call our Telephone Banking on 444 4 444.

Dual Currency Deposit (DCD)

  • Customer aims to achieve a higher yield by taking an exchange rate risk.
  • This product is not a capital protected, the risk of the transaction varies depending on the movement of exchange rates on the market.
Example Transaction 1:

This is suitable for customers who wants to exchange their foreign exchange to TL from a suitable level.

Transaction Amount

USD 100,000 -

Maturity Date

32 day

Spot Market Rate

5,9300 (usd/tl)

Agreement Rate

5,9500 (usd/tl)

Option Primium

%7

Deposit Interest

%4 (gross)

Total Gain

%11 (gross)

At the maturity, if the exchange rate of USD/TL is lower than agreement rate i.e. 5.9500 then:

The bank does not use its right owned according to the premium paid, the time deposit will stays as USD.

At the maturity, if the exchange rate of USD/TL is higher than agreement rate i.e. 5.9500 then:

The bank will use its rights owned according to the premium paid and the time deposit will be exchanged to TL with the agreement rate of USD/TL 5.9500.

In both cases option premium will be in the account at the next working day of the transaction date; the deposit interest; will be in the account at the maturity date.

This product is not a capital protected, the risk of the transaction varies depending on the movement of exchange rates on the market.

Example Transaction 2:

This is suitable for customers who wants to exchange their TL to foreign exchange from a suitable level.

Transaction Amount

TRY 100,000 -

Maturity Date

32 day

Spot Market Rate

5.9300 (usd/tl)

Agreement Rate

5,9000 (usd/tl)

Option Primium

%4

Deposit Interest

%8 (gross)

Total Gain

%12 (gross)

At the maturity, if the exchange rate of USD/TL is higher than agreement rate i.e. 5.9000 then:

The bank does not use its right owned according to the premium paid, the time deposit will stays as TL.

At the maturity, if the exchange rate of USD/TL is lower than agreement rate i.e. 5.9000 then:

The bank will use its rights owned according to the premium paid and the time deposit will be exchanged to USD with the agreement rate of USD/TL 5.9000.

In both cases option premium will be in the account at the next working day of the transaction date; the deposit interest; will be in the account at the maturity date.

This product is not a capital protected, the risk of the transaction varies depending on the movement of exchange rates on the market.