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 You Are Here: ICBC (Europe) S.A. Amsterdam Branch >Personal Banking >ICBC Packages >Foreign Exchange
Foreign Currency Exchange Spot Retail Customers
 

On this page we inform you on the main features including risks, applicable terms and conditions and user information in respect of our foreign currency exchange services. You will also find information in order to apply for one of the ICBC packages and to carry out foreign currency exchange transactions.
 
Terms and Conditions
The Terms and Conditions Retail Customers or Terms and Conditions Internet Saving Package Retail Customers apply to our retail products. The chapter Foreign Currency Exchange Spot Transaction Conditions in these terms and conditions especially addresses foreign exchange transactions. In addition to the Terms and Conditions Retail Customers also the General Banking Conditions are applicable including the Notes to the General Banking Conditions. We strongly advise you to take notice of them.

You can find the Terms and Conditions Retail Customers, General Banking Conditions and the Notes to the General Banking Conditions on our webpage download.

Introduction
The Multi Currency Account accepts transactions in Euro’s, US-dollars and Renminbi’s/Chinese Yuan’s. In order to be able to carry out foreign exchange transactions you need a Multi Currency Account first. When you apply for one of the ICBC packages, you will automatically receive a Multi Currency Payment Account. The Payment Account is suitable for payments and foreign echange in Euro’s (EUR), US-dollars (USD) and Renminbi’s/Chinese Yuan’s (RMB/CNY), transferring amounts to your foreign currency Saving Account(s), open foreign currency Time Deposits and making payments in foreign currencies. We refer to our “Saving & Deposit” webpage for our foreign currency Saving Account and Time Deposit product information.

Renminbi (RMB)/Chinese Yuan
Because of our Chinese background we are specialized in RMB/CNY financial services. Renminbi (RMB) also known as the Chinese Yuan (CNY) was introduced in 1949 and literally means “people’s currency”. The RMB/CNY has only one official ISO-code CNY. In the media you also see CNH as an abbreviation of the Chinese currency. This abbreviation is related to the so called ”foreign currency market”. Chinese regulations ensure a strict separation between the so called “domestic currency market” also known as “onshore” or “Mainland China” and the “foreign currency market” also known as “offshore”. Mainland China consists out of the People’s Republic of China excluding Hong Kong,  Macau and Taiwan. Both currency markets have their own RMB/CNY exchange rate and their own dynamics of supply and demand. The RMB/CNY quoted on the “foreign currency market” is applicable to your RMB/CNY entrusted funds.

RMB/CNY transfer restrictions Mainland China
The RMB/CNY of the “domestic currency market” is only under conditions freely transferable and convertible on the “foreign currency market”. China’s central bank, People’s Bank of China (PBoC) sets preconditions for transferring RMB/CNY denominated capital out or into the “domestic currency market”. It is the policy of the Chinese government to let the RMB/CNY capital flows move more freely and ultimately totally free. For more detailed information on the applicable transfer restrictions we refer to our webpage ”Remittances”.

Liquidity risk RMB/CNY
The RMB/CNY quoted on the “foreign currency market” is freely negotiable and convertible. But please be well aware that your RMB/CNY entrusted funds are exposed to liquidity risk. Liquidity risk means that convertibility to and backwards from RMB/CNY can be difficult or restricted. Measures taken by the Chinese government in relation to the “domestic currency market” can strongly affect the liquidity and as a result the RMB/CNY exchange rate of the “foreign currency market”.

Cost
When converting from one currency to another and re-converting back into the original currency you should be aware of the cost as a result of the foreign currency exchange bid-offer spread. The difference between the bid rate and the offer rate is called the bid-offer spread. The bid rate is the foreign currency rate at which the Bank is willing to buy one currency against another currency. The offer rate is the foreign currency rate at which the Bank is willing to sell one currency against another currency. Currency rates are determined by the Bank and usually represent a mark-up or markdown of interbank dealing rates. We do not charge separate handling fees. The foreign currency rates you can find in our Internet Banking and are refreshed every 10 seconds. Please visit our webpage fees and imits  for the cut off time and cost(s).

Foreign currency risk
Please be well aware that converting to a foreign currency brings foreign currency risk. Foreign currency risk means that the value of the funds entrusted to your Payment Account, Saving Account or Time Deposit denominated in USD and RMB/CNY is also depending on exchange rate fluctuations. Exchange rates can fluctuate because of all kind of reasons which affect the demand and supply of foreign currencies. If you reconvert your USD and RMB/CNY Payment Account, Saving Account and Time Deposit balance to Euro’s at an exchange rate that is less favorable than at the time you made your original conversion to USD and RMB/CNY you suffer a foreign currency loss. If the exchange rate is more favorable you make a foreign exchange profit. The net return in relation to a Payment Account, Saving Account or Time Deposit balance will depend upon market conditions prevailing at the currency conversion date. You must be well aware of the possibility to incur a loss as a result of a devaluation of the foreign currency. Such loss may offset the interest earned on the Saving Account and Time Deposit and may even result in losses of the initially deposited amount at the Payment Account, Saving Account or Time Deposit balance.

Execution only.
We do not offer investment advice concerning foreign exchange, do not analyze your financial position and do not verify your experience with foreign exchange to determine whether transactions in foreign currencies are suitable or appropriate for your situation and we do not contact you if market conditions change. Foreign currency taken and held by you are for the benefit and risk of you. We therefore accept no liability for any (foreign currency) losses.
Carefully consider the funds your need for daily and unexpected expenses and do not expose them to foreign currency and liquidity risk. Monitor closely your foreign currency position and foreign currency rates and obtain professional investment advice.

User information
ICBC Package application
Please visit our webpage ICBC Packages for more information

Foreign Exchange Transactions in your Internet Banking
Through Internet Banking you can do foreign exchange transactions easily. The rates you can find in our Internet Banking and are refreshed every 10 seconds on working days. Be aware it is not possible to do foreign exchange after the cut off time.

Incoming payment(s)
It is only possible to receive your fund(s) in USD, EURO or RMB. Please keep in mind that ICBC Amsterdam will not automatically convert your fund(s) into EURO.

Cut-off Time/ Order hours
Click here for more information on cut-off time.

Contact details
For more information on our products, please call our 24/7 call center +31(0)800 999 5588 (only Chinese and English) or send an email to banking@nl.icbc.com.cn


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