How to Protect Your Assets with a Foreign Currency Account

Caye Bank International

How to Open a Foreign Currency AccountIn times of political and economic turmoil, the first and most important form of international diversification is to open a foreign currency account offshore. Get some of your cash out of the United States and secured offshore in a quality bank in a foreign currency account.

The United States is in for some rough times. No matter your political viewpoint, you must see financial risk in the political battle that’s brewing. A sitting president is under attack from all sides and our economy is sure to be caught in the crossfire.

The best and easiest form of asset protection is to open a foreign currency account offshore. A foreign currency account allows you to choose from a basket of currencies and to hold your cash in a safe and secure offshore bank that’s outside the war zone.

Reduce Risk with a Currency Basket

A currency basket is a portfolio of selected currencies with different weightings. A currency basket in a foreign currency account is commonly used to minimize the risk of currency fluctuations.

For example, if you perceive risk in the US dollar, and prefer Europe, you might build a foreign currency account around the Euro, Swiss Franc and the British Pound. Maybe you believe Europe is too closely correlated to the USD. Then you can build a foreign currency account around the Australian dollar, Hong Kong Dollar, Japanese Yen and the Singapore Dollar.

Most foreign currency accounts offshore will offer USD, AUD, NZD, CAD, CHF, EUR, JPY, HKD, GBP, SGD and NOK. If you have a sizeable account, you can usually gain access to: Central Pacific Franc (XPF), Chinese Renminbi (Offshore) (CNH), Czech Republic Koruna (CZK), Danish Krone (DKK), Fijian Dollars (FJD), Hungarian Forint (HUF), Mexican Peso (MXN), Papua New Guinean Kina (PGK), Philippine Peso (PHP), Polish Zloty (PLN), Swedish Krona (SEK), Solomon Islands Dollar (SBD), Thai Baht (THB), Tongan Pa’Anga (TOP), and South African Rand (ZAR).

Diversify and Protect Your Assets with a Currency Holding Account

Of course, you don’t need to setup your foreign currency account around a basket. You can simply open a foreign bank account in EUR or HKD and operate it as you would any other offshore bank account.

These currency holding accounts are often used by businesses to hedge currency risk and facilitate payments to divisions operating in a foreign country. But, us average Americans can use them as a basic form of currency diversification and asset protection.

Yes, US banks allow you to hold foreign currency. But, if you’re looking to move some of your capital out of harm’s way, and want true diversification, that can only be achieved offshore. The political winds are howling in the United States and an economic tornado seems inevitable.

Why an International Bank is a Good Place to Hold Your Foreign Currency

A foreign currency account offshore provides true diversification and risk mitigation. It also provides a layer of asset protection not available in the United States. You and only you will have access to your capital held in an offshore bank.

And Caye International Bank can open these foreign currency accounts for any entity, asset protection structure, or offshore company you wish.

For example, Caye Bank can help you to move your IRA offshore and set up a currency basket for that retirement account. For more on how to move your IRA or defined benefit plan offshore, see: Here’s how to take your IRA offshore in 6 steps.

If you want maximum asset protection, you can build an impenetrable wall around your offshore assets using a foreign trust. An offshore trust structured in Cook Islands, Belize or elsewhere will provide exceptional protection from future creditors.

An offshore trust can be combined with a foreign currency account and private placement life insurance to provide tax-deferred or tax-free growth and unique estate planning tools not available in the United States.

For smaller accounts, I recommend a basic Belize LLC. This is one of the lowest cost asset protection structures and gives you quick access to foreign currency markets, with all transactions done in the name of your company. US compliance for a Belize LLC is easier than for an advanced offshore trust structure.

Here’s a Simple Way for You to Get a Private Offshore Account Now

You can also keep it simple: open a personal bank account and select one of the multi-currency accounts. Wire in US dollars and Caye International Bank will exchange them for the currency of your choice. You can be up and running with a foreign currency account offshore in just a few days.

No matter the structure, an offshore currency account offers solid protection and diversification. Select some percentage of your cash to move out of the US and out of the political war zone as soon as possible.

Maybe you feel the risk is low, so you move 10% offshore. Maybe you see a storm coming and move 50%, or your entire retirement account, abroad. No matter how you read the tea leaves, a foreign currency account is a great hedge against risk.

For more information, please contact Caye International Bank or call directly 011-501-226-2388 or 011-501226-3083. Caye Bank be happy to set up a diversified currency basket account or a basic currency holding account for you, your IRA LLC, or your offshore company or trust.

This article is copyright © 2017 

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About this author:

Joel Nagel

Nagel & Associates, LLC is an international law firm focused exclusively on international commercial transactions, international asset protection, and estate planning. Our team of experts helps provide international business leverage for leading corporations, entrepreneurs, and individuals. Mr. Nagel is also the Chairman of the Board at Caye International Bank.