I. Description The spot foreign exchange settlement and sale means the RMB-foreign exchange settlement or sale transaction between the customer and ICBC where delivery is completed in two working days after the date of closing at the agreed currency, amount and exchange rate.
II. Target Customers It is applicable to legal person customers duly registered in the People’s Republic of China (excluding Hong Kong, Macao and Taiwan) such as state organs, enterprises and institutions, social groups, troops and foreign-invested enterprises with the needs for foreign exchange settlement and sale, and overseas institutions opening foreign exchange accounts in the pilot free trade areas.
III. Functional Features 1. Spot exchange settlement and sale business is the most fundamental exchange tool between foreign currencies and RMB, and the trading structure is simple and clear, and easily understandable. 2. Spot exchange settlement and sale business is simple and fast, and the funds can be available immediately after the transaction is completed.
IV. ICBC Advantages 1. ICBC is one of the most influential market makers in the inter-bank RMB exchange market, and it can complete the hedging of transaction risks at a lower cost, and thus provide competitive prices to the customers. 2. ICBC’s channels for handling foreign exchange settlement and sale business include business outlets, self-service terminals, internet banking and mobile banking. Corporate customers can handle spot exchange settlement and sale business at business outlets or through the corporate online banking. 3. ICBC is the commercial bank covering with the most diverse varieties of currencies in the foreign exchange settlement and sale business among peers. With online banking features superior to peers in all aspects, it can provide various closing approaches including real-time, pending order, price inquiry to improve the customer’s internet banking service experience.
V. Qualification For a corporate customer to handle spot exchange settlement and sale business at a business outlet, it shall open an RMB settlement account and a foreign exchange account at ICBC, and present relevant approval documents, valid vouchers, commercial documents and other data required by the State Administration of Foreign Exchange (SAFE). For a class-A corporate customer that has opened a current foreign exchange settlement account (1000-current foreign exchange settlement account) at a domestic ICBC outlet, it can handle the spot exchange settlement and sale business under the current account via the corporate internet banking. Before a customer is allowed to handle foreign exchange settlement and sale business via the corporate internet banking, it shall register the certificate version of corporate internet banking, open a current foreign exchange settlement account and RMB settlement account, and submit true supporting materials such as trade contract, invoice and customs declaration; after the materials have been verified by ICBC, the Bank will designate a foreign exchange settlement account, foreign exchange purchase limit and delivery term for the customer (for a transaction application beyond the scope of business via e-banking channels as specified by the regulatory agencies and ICBC, the transaction shall be handled at a business outlet of ICBC).
VI. Service Channels and Hours i. Outlets From 9:30 to 18:00 from Monday to Friday (Beijing time) (subject to the business hours of outlets). ii. E-banking channels From 9:30 to 23:30 from Monday to Friday (Beijing time)
VII. Operation Guide i. Counter Flow chart for corporate customers’ spot exchange settlement and sale business
ii. Internet banking 1. Flow chart for corporate customers’ spot exchange settlement business
2. Flow chart for corporate customers’ spot exchange sale business
VIII. Risk Prompt Due to the uncertainty in the changes of exchange rate in future, in the case that the exchange rate in future is superior to the exchange rate in the spot business after the customer has handled the spot exchange settlement and sale business, since the customer has locked the cost or income of exchange rate, he cannot enjoy the extra income brought by the changes of exchange rate in future.
IX. Notes 1. The customers shall present relevant qualification certificates and compliant and valid documentary evidence as required by SAFE, and coordinate with the Bank to complete due diligence. 2. After the related materials of customers have been verified by the Bank’s tellers, the customers shall submit an official application for foreign exchange settlement and sale business. After the transaction has been confirmed, ICBC will issue a business transaction voucher to the customer. 3. ICBC will provide quotations to the customers according to the price trend of RMB exchange market, and make real-time updates based on market changes.
X. Definitions Spot exchange settlement: refers to the transaction where customer sells foreign exchange to ICBC and the Bank paying RMB at equal value to the customer according to the real-time exchange rate of the trading day. Spot exchange surrendering: refers to the transaction where customer buys foreign exchange from ICBC and ICBC collecting RMB at equal value from the customer according to the real-time exchange rate of the trading day.
Note: The information given on this page is for reference only. See the announcements and rules of local outlets for details.