Dual currency investment risk tool

DCI True Return Scenario Analyzer

See the real best and worst case outcomes of a dual currency investment. Compare the high advertised yield with the potential principal loss if the option is exercised and you convert back at a weaker FX rate.

1. Investment details and FX setup

Base currency label

For display only - usually your home currency.

Alternate currency label

Currency you may receive if the option is exercised.

Investment amount (base currency)

Total amount you place into the DCI in your base currency.

Enhanced yield (% p.a.)

Annualised interest rate offered on the DCI (not guaranteed principal).

Tenure (days)

Number of days the DCI runs for this placement.

Day count basis

Approximation used to annualise the yield. Bank terms may differ slightly.

Pre agreed strike rate

Base currency per 1 unit of alternate currency at which your principal plus interest may be converted if exercised.

Worst case spot rate at maturity

Your assumption of a weaker FX rate at maturity (base currency per 1 alternate currency) when you convert back.

Current spot rate (optional)

For context only - not required for the core loss calculation.

FX conversion fee / spread (%)

Optional percentage haircut applied when converting back to base currency. Leave blank or 0 if unsure.

This tool is for estimation only. It assumes simple interest on your DCI and a single worst case FX rate when converting back to your base currency. Actual payoff depends on your bank terms, FX spreads, tax and market conditions. Always review the term sheet and product disclosure carefully.

2. Best vs worst case outcome

Enter investment details to see results

Interest earned over tenure

Based on your principal and enhanced yield for the chosen number of days.

Worst case profit or loss vs principal

Calculated assuming conversion into alternate currency at your strike then back at your worst case spot.

Key in the investment amount, yield, tenure and FX rates on the left. The analyzer will compare the best case interest income with a realistic worst case principal loss if FX moves against you and the option is exercised.

Item	Best case - DCI lapses	Worst case - DCI exercised
Repayment currency before any conversion	Base currency	Alternate currency then base currency
Principal placed (base currency)	-	-
Interest earned	-	-
Total before any FX conversion	-	-
Amount in alternate currency (after strike)	-	-
FX rate assumed when converting back	-	-
Final amount back in base currency	-	-
Net profit or (loss) vs original principal	-	-

Why this DCI analyzer matters

Dual currency investments are often marketed using an attractive headline yield. What is less obvious is that your principal is exposed to FX risk. In the best case you receive your base currency back with enhanced interest. In the worst case you are repaid in an alternate currency and may suffer a capital loss when converting back.

Best case vs worst case in simple terms

In the best case the DCI is not exercised. You get back your original principal in your base currency plus the interest that corresponds to the advertised yield for the placement period. This behaves like a short dated time deposit with a higher rate.

In the worst case, FX moves against you and the option is exercised. Your principal plus interest are first converted into the alternate currency at the pre agreed strike rate. If you then convert that amount back at a weaker market rate, you may end up with less base currency than you started with. The loss on principal can be larger than the interest earned.

What this calculator does and does not cover

Shows interest based on your principal, yield, tenure and chosen day count basis.
Illustrates a clear best case (no exercise) vs worst case (exercise and conversion back at your assumed FX rate).
Highlights how many times larger the potential FX loss is compared with the interest gained.
Does not model changing FX over time, path dependent features, barriers or structured payoff variants.
Does not include tax, custody fees, platform charges or any legal or advisory cost.

Important disclaimer

This DCI True Return Scenario Analyzer is for general education only. It does not evaluate or recommend any specific product, bank or currency pair. All FX rates, yields and assumptions are entered by you and are not forecasts. Real world DCI structures may include additional terms, triggers and fees that change the payoff profile.

Before entering into any dual currency or structured investment, you should read the full term sheet, key information document and product disclosure statement, and seek advice from a licensed financial professional. Never invest money that you cannot afford to lose if the worst case FX scenario occurs.