DBS Bank launches US dollar investment program in support of currency appreciation
DBS Bank is scheduled to launch a U.S. dollar fixed deposit program for Taiwanese investors intrigued by the recent drop in the United States’ financial deficits, said Seraph Sun (孫可基), head of Consumer Banking at DBS Bank (Taiwan).
According to Sun, DBS Bank deems 2015 a hopeful year for the U.S. dollar to appreciate in value, not only due to the deficit decrease, but also the nation’s decline in job loss rates and inflation. “All of the above mentioned, and the drop in oil prices that prompted consumption, have a positive impact on the economy, so we feel the U.S. dollar will increase its value next year.”
“To assist our investors in grasping the positive appreciation, DBS Bank in Taiwan will be promoting the U.S. dollar fixed deposit program that grants customers as much as 1.88 percent interest for a three-month period,” said Sun.
Several Federal Reserve officials have hinted that it may be raising the key interest rate in 2015, and according to the three Fed rate hikes over the last two decades, the U.S. Dollar Index has increased over 4 percent six months before each rate hike, hence the Fed has not been planning on monetary squeezes, said Agnes Lin (林雅慧), SICE head at the DBS Bank Taiwan.
“The U.S. GDP may see a 2.5-percent increase in 2015, this will provide support for the U.S. dollar’s potential appreciation,” continued Lin.
From today until Feb. 26, DBS Bank Taiwan’s U.S. dollar investment program will be open to DBS Treasures (星展豐盛理財) members, offshore banking unit customers and those who are putting money in a U.S. dollar fixed deposit account before the said date; all will enjoy a higher interest rate compared to the average interest rate in Taiwan.
DBS Treasures (星展豐盛理財) members and offshore banking unit customers are granted an annual interest of 1.38 percent with each single transaction of NT$50,000 to NT$100,000. The interest will be raised to 1.68 percent when the transaction is between NT$100,000 to NT$500,000, and 1.88 percent if the transaction is raised to NT$500,000 to NT$800,000.
