Offshore Bank Accounts Can Help You Manage Different Currencies

Bank accounts in offshore jurisdictions such as Belize are routinely offered in United States dollars (USD) and the local currency. Although it is natural for North American account holders who are new to the world of offshore banking to open an account in USD, they should not ignore the convenience and possibilities that local currency accounts offer. These benefits range from making local transactions easier, having greater access to the local networks of automated teller machines (ATM) with international debit cards, taking advantage of the currency exchange spread where applicable and being able to take part in the local private enterprise.

Among the many benefits of offshore bank accounts, the ability to manage accounts in different currencies presents a major advantage to the account holder. In Belize, offshore banking institutions typically offer demand deposit, term deposits and lifestyle accounts to international clients. These three accounts are available in U.S. dollars, which makes them very popular among North American clients.

Offshore Accounts in Belize Can Also be Opened Using the Local Currency

Many account holders who opt to relocate to Belize for retirement or expatriation purposes initially open accounts in U.S. dollars and later switch to Belize money. Some international investors open two accounts: One in U.S. dollars and the other in Belizean dollars. The idea is to stay flexible and to take advantage of the value of the local currency.

The Value of Belizean Currency

Unlike currencies such as the euro and the Japanese yen, the Belize dollar is not suitable for speculative transactions in the foreign currency exchange market, commonly known as forex. The Belize dollar (BZD) used to be known as the British Honduras dollar and was pegged to the value of the U.S. dollar at different times during the Central American nation’s economic history.

In 1978, the BZD became pegged to the U.S. dollar (USD) at the rate of two BZD per each USD. Belize has been able to maintain this currency exchange rate for the last 35 years, which speaks volumes about the economic stability of the nation.

Although a permanent adoption of the USD has been talked about in the past, the Central Bank of Belize has no plans to abandon its beloved national currency. Offshore bank account holders with international debit cards will find that many Belizean ATMs offer the option of withdrawing funds in either BZD or USD.

Doing Business with Belizean Currency

Since the BZD is pegged to the USD, tourists have no difficulties in making quick currency conversions. Businesses that cater to tourists often list their prices in one currency or the other, but this practice is not followed by other industries in Belize.

The local economy thrives on using the BZD, which adjusts to the fluctuations of inflation and the consumer price index (CPI). In 2012, the CPI in Belize was estimated at 2.8 percent, a fairly stable rate among Central American nations.

The Belizean Economy Strongly Supports Private Enterprise

Traditional industries such as agriculture and tourism are flexible in their use of the BZD or the USD. Real estate negotiations can be made in either BZD or USD, but in many cases, the BZD will be the currency of choice when it comes to taking the transaction to the closing table.

Belize also boasts a thriving corporate culture thanks to its International Business Companies (IBC) Act. Savvy investors who want to enter the lucrative world of international finance can take advantage of the corporate-friendly environment that Belize offers. Monetary transactions between IBCs can be settled with BZD or USD.

Most newcomers to offshore banking will initially choose to open their accounts in USD; they should not forget, however, about the strength of Belize money and the benefits it offers.

Caye Bank

Caye International Bank Limited (CIBL) was granted an Unrestricted "A" Class International Banking License on September 29th, 2003 by the Central Bank of Belize and is regulated by the Central Bank of Belize which set the standards for liquidity and capital adequacy.

Find the Right Offshore Savings Account When you Move Abroad

When you are moving abroad, everything is new again, including banking. Simple details that you may take for granted are suddenly big decisions that affect your life. Opening a new savings account offshore is one of them. Discover the advantages of establishing an offshore account. Learn about other financial products you might need as well. Continue investing in stocks, bonds, hedge funds, mutual funds, structured products, futures and options. Take the time to compare the banks that are available to you long before you move to another country. Learn about bank products, customer service features and available tax advantages.

Investigate World Markets with Offshore Investments

By investing offshore, you can explore a variety of world markets like China, which boasts a fast-growing economy; Japan, with the world’s second largest consumer market; or Belize, home to a favorable tax climate for corporations.

Why You'll Love Your Private Offshore Accounts

If you’re considering opening up a private offshore account, just some of the things you will love include increased financial diversity, high reserve requirements for fiscal safety, chances to pursue new investment opportunities, potentially lower taxes and the freedom from government intervention.

Make Life Easier with Offshore Online Banking

Over the past decade, the ubiquity of the online bank account has become a world-wide phenomenon. Many people head to their computer or smartphone when they want to check on the status of their checking account or to see if their direct deposit paycheck came through. Recently, this trend has come to the world of offshore banking. More and more people are interested in the appeal of checking on their finances from an Internet-ready device at a moment’s notice, particularly those who live overseas or who travel extensively for work or pleasure. Offshore online banking is simple, cost-free for the user and a great way to make wire transfers or check on offshore trusts and holdings whatever the time zone.