1. Foreign Exchange Spot
• Foreign Exchange Spot: is a transaction in which the two parties are committed
to buy and sell an amount of foreign currency with spot rate of exchange and the
settlement will be done within two working days.
• Transaction’s Objects : Individuals and economic entities.
• Transaction fee: None
• Document in spot transactions: Economic entities, other organizations and
individuals using VND to buy foreign currency from MB via spot transaction have
to present documents providing information on the purpose, quantity and kinds of
foreign currency needed payment, payment time in accordance with current Foreign
Exchange control regulations.
• Transaction Procedures:
- Selling Foreign Currency to get VND: Using form contract of foreign exchange
in which specified: The quantity of Foreign Currency need to sell, selling
exchange rate, and VND receiving place. .
- Buying Foreign Currency by VNĐ: Using form contract of foreign exchange in
which specified: quantity of Foreign Currency need to buy , buying exchange
rate, and USD receiving place.Present original of related payment documents in
accordance with Foreign exchange control regulations.
2. Foreign Exchange Forward
• Foreign Exchange Forward: is a transaction in which two parties commit to buy,
sell an amount of foreign currency with at fixed exchange rate and the payment
will be carried out in the fixed date in future.
• Transaction’s Objects : Individuals and economic entities
• Transaction Duration : At least 3 days, maximum 365 days ( Including weekends
and holidays)
• Transaction fee: None
• Document in forward transactions: Economic organizations, other organizations
and individuals using VND to buy foreign currency of MB via forward transaction
have to providing information on the purpose, quantity and kinds of foreign
currency needed payment, payment time in accordance with Foreign exchange
control regulations.
• Transaction Procedures : Customer directly contacts with Corporate Service
Department at Branch/ Transaction Room to come to an exchange rate agreement,
duration, quantity, payment date, payment method, deposit rate to ensure
carrying out contract and sign in forward transaction contract.
3. Foreign Exchange Option between Foreign Currencies is a transaction
between put option party and call option party in which call option party has
the right without obligation buy or sell fixed amount of foreign exchange at a
negotiated rate in agreed time. If call option party chooses to carry out its
right, put option party is obligatory either to sell or buy an amount of foreign
exchange in contract following with negotiated rate.
• Benefit:
Options help customer to protect their capital flow when carrying out
import-export business from risk in front of the unquantified fluctuation of
exchange rate in the market.
Option transaction with reasonable fee can be accepted, customers have an
exchange rate option in fluctuant Foreign Exchange market.
- Option transaction has a chance to invest on the fluctuant exchange rate with
limited fee, unlimited profit.
• Kinds of Option between foreign currencies:
- Call option: is the right to buy Foreign Currency at agreed exchange rate in a
period of time or fixed time.
- Put option : is the right to sell Foreign Currency at agreed exchange rate in
a period of time or fixed time.
• Types of Currency Option:
- American Style Option: Option can be carried out at any time during the period
of validity of the contract.
- European Style Option : Option is only carried out at the maturity time of the
contract .
• Object:
- Call option party: individuals, economic entities operating in VietNam
- Put option party: Military Joint Stock Bank.
• Option fee : is an amount of money which call option party has to pay for the
bank to get options
• Operating Exchange Rate : is the exchange rate which is negotiated buy the two
parties in the option contract.
• Money in Transaction : USD, EUR, GBP, JPY, AUD …
• Quantity : At least equal to 100,000 USD (one hundred US dollar) for each
transaction
• Transaction Duration : At least 3 days, maximum 365 days ( excluding weekends
and holidays)
• Effective duration of the contract : is the period of time option can be
carried out on call option parties which is counted from the signed date to
before 11h00 a.m (HN time) of the maturity day.
• Document : There is no need to present document to prove the purpose of using
foreign currency when customer takes part in option.
• Operating contract : In the need of operating contract, customer send
operating contract request paper to MB.
4. Foreign Exchange Option between Foreign Currencies and VNĐ
• Currency and VND : is a transaction between the buyer and seller, in which the
buyer has right without obligation to buy or sell fixed foreign exchange at
fixed exchange rate in the agreed period of time. If the buyer exposes their
right, the seller has obligation buy or sell an amount of foreign exchange in
the contract on agreed price.
• Kinds of Foreign Currency with VND:
- Call option: is the right to buy Foreign Currency at agreed exchange rate in a
period of time or fixed time.
- Put option : is the right to sell Foreign Currency at agreed exchange rate in
a period of time or fixed time.
• Types of Foreign Exchange Option:
- American Style Option: Option can be carried out at any time during the period
of validity of the contract.
- European Style Option : Option is only carried out at the maturity time of the
contract .
• Object:
- Call option party: individuals, economic organizations operating in VietNam
- Put option party: Military Joint Stock Bank.
• Option fee : is an amount of money which call option party has to pay for the
bank to get options
• Operating Exchange Rate : is the exchange rate which is greed by the two
parties in the option contract.
• Money in Transaction : USD, EUR, GBP, JPY, AUD …
• Quantity : At least equal to 100,000 USD (one hundred USD) for each
transaction
• Transaction Duration : At least 3 days, maximum 365 days ( excluding weekends
and holidays)
• Effective duration of the contract : is the period of time option can be
carried out on call option parties which is counted from the signed date to
before 11h00 a.m (HN time) of the maturity day.
• Document : There is no need to present Document to prove the purpose of using
foreign currency when customer takes part in option proficient applied for FC
with FC.
• Operating contract : In the need of operating contract customer send operating
contract request paper to MB.
5. Foreign Exchange Swap
• Foreign Exchange Swap is both buying and selling the same amout of Foreign
Currency transaction (only 2 currencies used in this transaction), in which
payment Dead-line of the 2 transaction is different and the exchange rate of the
two is fixed at signed time.
• Object in transaction : Economic organizations.
• Transaction Dead-Line : At least 3 days, maximum 365 days ( excluding weekends
and holidays)
• Transaction fee : None
• Document in spot delivery transaction: There is no need to present Document to
prove the purpose of using FC
• Transaction procedure : Customer directly contacts with Business Customer
Department at Branch/ Transaction Room to come to an exchange rate agreement,
duration, quantity, payment date, payment method, pay sa security to ensure
carrying out contract and sign in swap transaction contract.
6. Interest Rate Swap
An interest rate swap is a derivative in which one party exchanges a stream of
interest payments for another party's stream of cash flows. Interest rate swaps
can be used by hedgers to manage their fixed or floating assets and liabilities.
Purpose
- Hedge against adverse movements in interest rate
- Changing from floating to fixed interest rate (without changing others
conditions) to reduce interest rate risk of rising (Incase customers are
borrowing floating rates)
- Changing from fixed to floating interest rate to reduce interest rate risk of
falling (Incase customers are borrowing fixed rates)
Characteristics
- Term of interest rate contract is maximum 5 years from value date
- No principal is exchanged and no premium is paid
- Total payments is caculated from the difference level bettween fixed and
floating rate on the setlement date (multipilied by the notional principal)
Type of currency
- Between VND and other foreign currencies or foreign currencies with one
another.
For further information, please contact MB transaction offices all over the
country. Contact MB
