If you’re interested in learning more about a foreign currency account and how it can benefit you, you’re not alone.
Foreign non-residents from around the world are looking to open foreign currency accounts outside of their home country to access countless benefits.
Foreign currency accounts allow account holders to hold, receive, and send money quickly and affordably around the world. They are also an important tool to fight against inflation, currency devaluation, and economic unrest. In fact, having an overseas foreign currency account is the only way to ensure that you can access your money no matter what.
In this article, we’ll share everything you need to know in order to decide whether opening a foreign currency account is right for you.
We’ll also outline several jurisdictions you might want to consider when opening a foreign currency account today, and much more.
But, before diving in, if this is your first time visiting GlobalBanks, don’t forget to download your free Non-Resident Banking Starter Guide. It’s designed to help non-residents open accounts in top banking hubs around the world.
Why Open a Foreign Currency Account?
There are many reasons why opening a foreign currency account may be right for you or your business.
But, more than anything, opening a foreign currency account can give you access to a stable banking jurisdiction — no matter where you come from.
And, if your home country may be going through an economic crisis or dealing with a devalued currency, this can be a very important consideration.
Why Foreign Currency Accounts Make Sense…
For instance, if you’re an Argentinian and you’re worried about the persistent inflation, it’s no surprise that you would be concerned about keeping your money in Argentine banks.
In fact, Argentina’s inflation rate has been a problem for years. And, with no sign of slowing down, it’ll continue to erode people’s savings, income, and economic prosperity… or what’s left of it.
Of course, Argentina isn’t the only country facing an economic crisis. Take Lebanon for example. Lebanon’s lira has lost more than 90% in value in only two years. Naturally, this has created serious problems domestically, including shortages of imported goods, a decrease in purchasing power, and worse.
Not surprisingly, Lebanese residents with the ability to do so are trying to move their savings into more stable banking jurisdictions with economically sound currencies.
Obviously, if you’re living in a country that is experiencing similar issues as Argentina or Lebanon, opening a foreign currency account in a safe banking jurisdiction just makes sense.
In fact, having a foreign currency account can remove the fear of not being able to access or withdraw funds when needed, protect your deposits from rampant inflation, and can secure your savings in a stable banking jurisdiction.
But, it’s not just residents of economic warzones that can benefit from a foreign currency account, far from it.
In fact, whether you’re a frequent traveler, worried about your retirement savings, or you do business offshore, a foreign currency account can be an important tool to help you manage your finances effectively.
But, before you start opening, let’s take a look at the benefits a foreign currency account can offer to ensure it’s the right fit for you.
Benefits of Opening a Foreign Currency Account
If you frequently travel to the same destination, do business internationally, or are looking to access international investments, opening a foreign currency account is an obvious choice.
Of course, the benefits that one non-resident can unlock from a foreign currency account will differ from the next person.
And, in most cases, the benefits will depend largely on where the account is being opened and the bank that opens the account.
Of course, regardless of where you open, there are some general benefits that most foreign currency accounts do offer.
With this in mind, here are some of the benefits that you can tap into if you decide to open a foreign currency account:
Benefits of Opening a Foreign Currency Account
- Hold multiple currencies to protect your savings from devaluation
- Access interest-bearing accounts outside of your home country
- Receive international debit cards with low (or no) FX fees
- Receive payments in local currency to avoid high transaction costs
- Pay foreign suppliers in local currencies to avoid currency fluctuations
- Protect your money in banks with deposit insurance guarantees
- Access secure and sophisticated online banking platforms
- Enhanced asset protection in countries with strict rule of law
As you can see, opening a foreign currency account can offer a range of benefits.
In fact, if you operate a business outside of your home country, a foreign currency account can be very beneficial.
By having an account abroad, you can pay international suppliers and receive payments from international customers in their local currencies. Not only does this make dealing with overseas transfers easier, but it also allows you to avoid conversion costs and fluctuations in exchange rates.
Of course, there are other benefits beyond avoiding conversion costs and exchange rate fluctuations.
For instance, as mentioned above, some foreign non-residents look to open a foreign currency account in more stable banking jurisdictions to protect their savings. This also allows them to grow their wealth in a stable currency instead of worrying about a devaluation. As an added bonus, they’ll also be able to access their funds whenever they see fit.
Where To Open a Foreign Currency Account
Before you start applying to open a foreign currency account, you should understand what your banking needs are and exactly what you’re looking to achieve. Knowing these important factors will help you choose the best possible jurisdiction.
And, whether you’re looking to use a foreign currency account to protect your assets, access multiple currencies, or avoid a financial crisis in your home country, there are many different countries to choose from when deciding where to open an account.
Again, whether a foreign currency account is suitable for you or your business will depend on your specific client profile and banking needs. For now, let’s consider some of these offshore banking jurisdictions that do offer foreign currency accounts for foreign non-residents, so you can start considering where you might want to open.
Isle of Man
Many consider the Isle of Man to be one of the most stable offshore banking jurisdictions for non-residents. In fact, not only is it economically stable, but the Isle of Man is also home to solid banks, a culture of professionalism and accountability, and accepts foreign non-resident clients from around the world. Not to mention, remote account opening is 100% possible if you know the right bank and bankers to contact.
We cover all of the available foreign non-resident banking options in the Isle of Man in our premium report “Banking in the Isle of Man: Expat Banking Goes Mainstream”.
You can access this report immediately when you join GlobalBanks IQ.
Singapore
Singapore has become a safe haven for many foreign non-residents seeking protection from economic uncertainty at home. In fact, due to Singapore’s reputation for fiscal responsibility, strict banking regulation, and economic stability, it’s no surprise that more and more foreign non-residents are looking to open accounts here.
However, opening a foreign currency account in Singapore is not easy to do. But, with the right information and account opening strategies, it is possible. We detail the entire account opening process for non-residents, including how to choose the right bank and even how to open accounts remotely in our premium report “Banking in Singapore: Global Banking at Its Best (And How To Get In)”.
You can access this report immediately when you join GlobalBanks IQ.
Liechtenstein
Now, banking in Liechtenstein may have never crossed your mind. But, it’s one of the largest offshore wealth hubs in the world. Not surprisingly, many foreign non-residents look to Liechtenstein for wealth management and private banking. In fact, foreign companies are able to open accounts here too.
So, if you’re after wealth management, asset protection, and foreign currencies, opening a foreign currency account in Liechtenstein may be an option you want to consider.
If you’re interested in learning more about banking in Liechtenstein, check out our free article “How to open a Bank Account in Liechtenstein as a Foreigner” for everything you need to know on banking in Liechtenstein as a foreign non-resident.
Panama
One offshore banking hub that you might be more familiar with is Panama. Though it may not be on your radar thanks to the Panama Papers scandal. If that’s the case, you may want to reconsider.
Panama is not only a beautiful destination, but it’s also an accessible offshore banking hub for foreign non-residents. And, it’s no surprise that many foreign non-residents consider opening foreign currency accounts in Panama thanks to the use of the US dollar and the stable economy.
That said, account opening here can be challenging. But, it is possible if you know which banks and bankers accept foreign non-residents. If you’re interested in learning more about banking in Panama and how you can open a foreign currency account here as a non-resident, we have you covered. We outline everything you need to know about banking in Panama in our premium report “Bank Account Opening in Panama”.
You can access this report immediately when you join GlobalBanks IQ.
This is just a small taste of the many banking jurisdictions that allow foreign non-residents to open accounts, including remotely. So, regardless of your reason for wanting to open a foreign currency account, there are many options to choose from.
Of course, if you need help determining which countries you should consider, we can help. Our team of experts is standing by to help you identify which banks are best for you or your business. And, if you have more complicated banking requirements, we can help you identify the best strategies for account opening.
Open a Foreign Currency Account Today
If you’re ready to start opening foreign currency accounts today, you can start by accessing GlobalBanks IQ. GlobalBanks IQ is our dedicated international banking intelligence platform.
GlobalBanks IQ gives you everything you need to start figuring out where you should (and shouldn’t) open accounts.
When you join GlobalBanks IQ, you immediately unlock the GlobalBanks Database of international banks. Home to 250+ banks in 50+ countries.
And, you get access to our library of premium (members-only) reports. These include proven account opening strategies, country-specific banking options, and lists of banks for specific client types.
Plus, you unlock our account opening checklists, dedicated account opening alerts, and much more.
To get started, click here to see if GlobalBanks IQ is the right choice for you to start accessing the benefits of international banking today.