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 Foreign Currency Transactions

Foreign Currency-Turkish Lira or Foreign Currency-Foreign Currency (parity) transactions with the same day value.

If requested by the customers, purchase/sale transactions in TRY, USD, EUR against Azerbaijani Manat (AZN) and Georgian Lari (GEL) can be realized at the best prices offered in local currencies by the PASHA Bank institutions located in Azerbaijan and Georgia.

Foreign currency transactions of the same day value are carried out between 09:00 - 15:00 hours.

 Derivative Products

A. Forward Transactions

Forward is the process of buying or selling different currencies at a specified future time at exchange rates agreed upon today.
Mostly foreign trade companies use this product frequently in order to protect themselves against exchange rate risk. For example, importing firms will have taken precautions against the appreciation in exchange rate for foreign exchange payments that they would make at a future time by making forward foreign currency buying transactions. The exporting firms will have protected their future receivables in foreign currency against the downward movement in the exchange rate by carrying out forward foreign exchange sales transactions.
Except for the purpose of hedging against exchange rate risk, there is a risk that investors may suffer losses due to speculative forward transactions

B. Foreign Currency Swap Transactions

Foreign Currency Swap Transactions are the process of re-purchasing or selling the foreign currency that was sold or bought at the specified start date and at the specified exchange rate at the maturity date and the specified forward exchange rate. Whiie there is no exchange rate risk in these transactions, there is interest risk, however. It is usually preferred by investors to adjust liquidity and cash flow.

C. Foreign Currency Options Transactions

Option contracts are contracts that give the buyer / seller of the option the right to buy or sell a certain amount of currency at a certain price, at or until a future date. Unlike forward transactions, whether the transaction will occur on the maturity date depends on the market price of the underlying asset at the specified date. Options written on the exchange rate are options that give the right or obligation to buy (call) or sell (put) a foreign currency at a certain utilization (strike) rate. As the option contract gives the buyer the right to buy or sell the option, the purchaser will use this right if it is profitable. The seller of the option has to fulfil the obligation to buy or sell if the party buying the contract wants to exercise this right.
The key factors affecting the option price are the spot price of the underlying asset, the strike price, the number of days remaining to maturity, the volatility of the underlying asset, and the risk-free interest rate.
While the risk assumed by the party buying the option contract is limited to the premium paid by this party, the obligation of the selling party is unlimited. The option seller bears the risk of losing the principal.
Customers can take advantage of option products by providing PASHA Bank bonds as collateral.

D. Types of Over the Counter Derivatives Transactions and the List of Underlying Assets

The following table shows the types of over-the-counter derivative transactions and the assets underlying the transactions that are conducted by our Bank within the scope of the "Communiqué no. III-37.1 on the Principles Regarding Investment Services and Activities and Ancillary Services" by the Capital Markets Board.


OTHER DERIVATIVE TRANSACTIONS  3 Other Futures Trading (Securities, Other)
OPTIONS 4  Currency Buy-Sell Option (USD/TRY, EUR/TRY, EUR/USD)
 Structured Deposit DCR (Dual Currency Repo) (USD/TRY, EUR/TRY, EUR/USD)
 Other Structured Deposit (Dual Currency Bond) (USD/TRY, EUR/TRY, EUR/USD)

 Securities Buying / Selling Transactions

A. PASHA Bank Bond/Note Transactions
Bonds issued by PASHA Bank are bought and sold with favorable maturities and interest rates. This product, which is equivalent to deposit, is offered for sale at attractive prices for such maturities as 32-46 days. Transactions for PASHA Bank bonds of varying maturities are carried out through the Borsa Istanbul Final Purchase and Sales Market or through customer representatives by contacting PASHA Bank.

B. Government Bonds / Treasury Bills Transactions
Treasury bills are government debt securities issued by the Treasury of the Republic of Turkey with a maturity of less than one year; government bonds have a maturity of more than one year. Both the treasury bills and the government bonds are guaranteed to pay you the principal and interest in the event that they are kept until maturity. It is possible to sell both products in the secondary market before the maturity. In this case, the market conditions at that time will be valid; there is a risk of loss in sales made before the maturity.

The trading transactions for bonds and bills are carried out through PASHA Bank customer representatives by selecting bonds and bills that are in line with the risk profile of the customer. Orders can be placed on the Borsa İstanbul Notes and Bonds Market directly on behalf of the customer or the tenders held by the Undersecretariat of Treasury can be participated in through PASHA Bank.

Transactions of the same day value are carried out between 09:30 - 14:00 hours and forward-valued transactions are carried out between 09:30 - 17:00 hours.

C. Eurobond Transactions
Eurobonds are medium- and long-term bonds that are issued abroad by institutions, companies or governments in a currency other than their own national currencies in order to obtain financing.

Features :

•They are bonds ranging usually from 5 to 30 years in maturity.
•They are issued mostly in USD and EUR.
•Coupon payments are made twice a year for fixed-interest USD bonds and once a year for EUR bonds.
•They can be converted into cash under the market conditions prevailing at the time of transaction without waiting until maturity.
•Value date in the transactions on the secondary market is T+3 business days.
•Eurobond coupon payments are made in the currency in which the bond was issued.
•Physical delivery is not possible.

Customers who think about long-term foreign currency investments may prefer Eurobonds. Eurobonds can be converted into cash without waiting for a due date. In this case, the market conditions prevailing at that time will be valid. There is a risk of loss when they are sold before the due date.
Eurobond trading transactions can be realized through PASHA Bank customer representatives or by directly communicating with our Treasury Department in line with the risk profile of the customer.

D. Transactions for Private Sector Bonds / Notes
Private sector bonds/bills are financial instruments (debentures) denominated in TL with maturities either less than a year (bills) or longer than a year (bonds) issued by banks or corporates to provide financing.

•Private Sector Bonds / Notes can be issued with discount or coupons.
•The difference between Private Sector Bonds / Notes and Government Bonds and Treasury Bills is that there is no government guarantee as the issuer is a bank or joint-stock company.
•The additional rate of return is evident at the date of issue. Private Sector Bonds / Notes provide higher yields than Government Bonds and Treasury Bills.
•In the Private Sector Bonds / Notes, principal and interest are paid to you by the issuing firm if they are kept until the end of the maturity. It is possible to sell them in the secondary market without waiting for the due date. In this case, the market conditions prevailing at that time will be valid.

Trading transactions for Private Sector Bonds / Notes can be realized through PASHA Bank customer representatives or by directly communicating with our Treasury Department in line with the risk profile of the customer.

 Repo Transactions

This is a transaction whereby fixed-income securities such as government bonds, treasury bills, private sector bonds / notes, and Eurobonds are sold with a commitment to buy at a specified time based on pre-determined conditions. Repo transactions in Turkish Lira, USD, and Euro, with preferred due dates can be realized through PASHA Bank.

For customers who want to make investments in short-term liquid instruments, transactions are carried out at the desired maturities starting with O / N (overnight).

Repo transactions can be realized through PASHA Bank customer representatives.

 Authorized Investment Services and Activities

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PASHA Bank Headquarters

Sultan Selim Mahallesi,
Hümeyra Sokak,
PASHA Plaza No:2/7
34415 Kağıthane / Istanbul - Turkey