The dual currency deposit is one of the most popular payoffs within foreign exchange (FX) linked structured products around the world.
While FX options and OTC derivatives are very widely used for hedging and speculative purposes, FX linked structured products comprise a relatively small part of the overall market dwarfed by the dominating position of equities. Some FX linked structured products mimic their equity counterparts, for example a medium dated principal-protected product whose underlying is a basket of currencies (often emerging markets) against another (more established) currency. The return is typically a particip