Standard Chartered and HSBC has something similar. The minimum amount is much lower.

This is how it work, using this example:
Assuming you pair RM vs AUD. Contract is for 1 week. Interest @ 70% annual interest. AUD=RM2.30 now. Target price is AUD=RM2.27.

1 week later at maturity, several things can happen:
1. AUD higher than the Target Price of RM2.27. Bank give your money back in RM plus 70% interest.
2. AUD at Target Price of RM2.27. Bank give your money back in AUD + 70% interest. Converted at 2.27
3. AUD at 1.90. Bank give your money back in AUD + 70% interest. But still converted at 2.27 because this is the contracted price.

I reckon it's a very worthwhile thing to consider if you do not mind getting back your money in RM or foreign currency (for example, you have son in Australia studying).

The way I looked at it, you can only lose out if No.3 scenario happens. But then, if you need to buy AUD right now to send to your son in Australia, converting at 2.27 is still better than converting at 2.30.

You can also enter contract form 1 week to several month. Different interest rate. Range from 70% to single digit %.

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Added on November 15, 2008, 8:28 pmSo far, the best website that provides currency charts are:

1. http://www.ozforex.com.au/
On left hand side menu, select "Long Term Charts". Date goes back maximum 10 yrs.

2. http://fx.sauder.ubc.ca/plot.html
Data can go as far back as 27 years.



Anyone know any other good site for charts?

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Added on November 15, 2008, 8:30 pmCan anyone tell me how to add charts onto this thread?

This post has been edited by Optiplex330: Nov 15 2008, 08:30 PM

The last time I asked HSBC, the interest can be as high as 70+% depending on term and target price. And no, that was not a typo mistake and I was shocked.

The way I looked at it, the bank can ONLY make money if AUD went down to say....1.90 and still sell it to you at the contracted price of 2.27. If 1 and 2 happens, we are on the winning side.

This is precisely the reason I am thinking it would be perfect for those needing to use AUD in the 1st place. Like having children in Australia studying and needed the AUD anyway.

Having said that, AUD is 2.34 right now. And I reckon it will go below 2.00, so if one could afford to wait, it still not wise to enter into this Dual Currency arrangement just yet.

Anyone want to guess how much will GBP go down to?

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Added on November 16, 2008, 8:13 amI think 1.4% for a mere 1 week is a lot of money. Normal Malaysian FD rate for 52 weeks is only about 3+%.




This post has been edited by Optiplex330: Nov 16 2008, 08:13 AM

I knew of RM50K, 100K and 250K contract subject to some condition. Go ask around.

I think you can do it this way:

1. When you wanted to, convert your RM into AUD and make an AUD Fixed Deposit account for 3 months (that will mature in mid-May, then renew it monthly before final withdrawal in July)

2. When July comes, you tell the bank to convert the AUD in the fixed deposit into a bank draft in your name.

3. You bring the bank draft to Australia. Open a Australian bank account and deposit your bank draft into it.

Are you or your parent a HSBC Premier customer? If yes, there is another alternative.

RHB must be joking. 1 month GBP FD rate at 0.9% when other banks give 2.+%.


And Hi cherroy. Where do you get those currency charts?

This post has been edited by Optiplex330: Feb 15 2009, 07:37 PM

I just checked. 6 month GBP FD is 1.9% now. Still far better than RHB's 0.9%