Saving Money Foreign Money Saving Benefits

Suba

Verified member
Local currencies in third countries often fluctuate either by inflation or deflation. To avoid the loss of saving or investing local money we can choose the type of foreign money savings. Although saving/investing foreign money is not always promising but at least we will get capital gains. Because in general, foreign currencies from developed countries will be more stable than local currencies from third countries
Same with local money savings, foreign money savings are also guaranteed by state institutions (max $142,000) so they will be safe, will also earn interest like local money savings in general,
Banks generally provide a choice of various foreign currency savings such as USD, Euro, Australian Dollar, Singapore Dollar, Chinese Yuan, Japanese Yen, Hong Kong Dollar, Pound sterling, New Zealand Dollar, and so on.
Here are some of the advantages of holding foreign money savings, such as:
1. As Investment Diversification
Right now, of course, you have invested in cryptocurrencies and high-risk stocks, so we need a safer investment reserve.

2. Preparation of tuition fees
If you want to continue your studies or take a master's degree abroad, of course you already have a goal in which country to go, and you can adjust your foreign currency savings.

3. Local Money Fluctuations
If you like shopping on marketplaces from abroad, it will be easier for you to make payments, compared to using local money, because foreign currencies are more resistant to devaluation.

4. Easy To Draw
Foreign money savings are the same as local money savings, easy to withdraw anytime when we need cash. and you can convert at the current price.

5. Vacation abroad
You can also prepare foreign currency savings as a vacation plan abroad, which is useful for anticipating the currency of the destination country to increase in value compared to our local money.

6. Transactions will be smoother
Foreign money savings can also be used to transfer and receive from foreign trading platforms where our local money is not available, so there is no conversion fee.

To choose a foreign currency as savings, the most important thing is to set financial goals, so you can choose a foreign currency that suits your needs.
 

Mika

VIP Contributor
If you live in a country where your local currency is valued less compared to USD, Euro, etc, it can be profitable to save money in foreign currencies. For instance, in my home country, you can earn profits if you save in foreign currencies. However, the government does not allow local people to hold foreign currency. Only those who are dealing with international trade and commerce, those who have a passport and have visited foreign countries a couple of times, people who have licenses to exchange foreign currencies, and the foreigners can hold foreign currencies. For others, it is illegal.
 

Jasmine

VIP Contributor
You need to check with your country's law whether it is legal to save foreign currency. If you are in lower income country and if you save currencies from higher income countries (provided foreign currency saving is legal, you might profit well. For example, if you are in Nigeria and if your country's law allows you ti save USD, you can save USD and earn profits.
 
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