Foreign Currency Deposits

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Euro Implosion?

Many people are asking us about the viability of the Euro and what might happen in the event that the sinlge currency should break up.
 
We cannot be certain but should such an event occur, the fallout will not be pleasant.
 
We have been asked by clients about foreign currency deposit options and whether it's a good idea to open up these accounts.
 
While not without risk, opening a foreign currency account provides some level of diversification away from the Euro and such accounts may well provide a shelter from a possible Euro collapse.
 
Investec are now offering clients foreign deposits in a wide variety of currencies. Available currencies include the US Dollar, Pound Sterling, Canadian Dollar, Swiss Franc, Australian Dollar and Norwegian Kroner.
 
Each country offers different reasons for converting deposits to their currency and the reasons are very different.
 
Interest rates on offer in some of these currencies may be low and the exchange rate may not be as favourable vis a vis historical levels, so there is no guarantee you will get back the same amount in Euro should you reconvert at some time in the future.
 
Gains on Foreign Currency dealings are also subject to CGT so some tax administration will be required.
 
Please download the document from Investec which provides some more detail on the available currencies.
 
Please contact us if you require any further information.