Tailored to your choice of currency pairs, strike rate and tenor
Potentially earn higher returns on the principal amount invested
Choose your investment tenors ranging from 1 week to 6 months
CLIs are dual-currency investments involving a currency option. The option gives the CLI issuer the right to repay the principal and interest at maturity, in either the base currency or alternate currency.
CLIs are often used by investors to improve returns on cash holdings, when they have a stable or mildly bullish view of a particular currency pair. Investors are looking for a higher return on their base currency deposits, instead of buying a particular alternate currency outright.
If they had a strongly bullish view of the alternate currency, they might prefer to buy that currency outright at the prevailing market price.
CLIs are sophisticated investment products that carry significant risks and are not suitable for investors who do not comprehend the product or are risk averse.
Investors agree with their bankers on the:
Investors may earn an enhanced return if their view of exchange rate movements are accurate.
Can be tailored to suit investors’ needs, based on their of currency pairs, the strike rate, and tenor.
A CLI’s tenor is generally short term, ranging from 1 week to 6 months.
In deciding the currency pairs, investors can choose from a variety of currencies, including AUD, CAD, CHF, EUR, JPY, NZD, SGD, and USD.
Investors face the risk of having their base currency converted to the alternate currency at a rate lower than the market at maturity.
CLIs are meant to be held to maturity. Early withdrawal may result in investors receiving less than their principal amount.
CLIs are issued by financial institutions and investors are exposed to the issuer’s credit risk.
To understand the product-related terms, visit our Glossary.
Disclaimer for Investment Products
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