Dual currency deposit (original) (raw)

In finance, a dual currency deposit (DCD, also known as Dual Currency Instrument or Dual Currency Product) is a derivative instrument which combines a money market deposit with a currency option to provide a higher yield than that available for a standard deposit. There is a higher risk than with the latter - the depositor can receive less funds than originally deposited and in a different currency. An investor could do a USD/JPY DCD depositing USD and receiving JPY.