Banking on a foreign currency account
An offshore stash of foreign currency cash can take the uncertainty out of what a trip abroad will end up costing you
The rand is volatile, being at the mercy of many factors, and its depreciation can play havoc with an overseas holiday budget, the funding of children's studies abroad or any other foreign currency need you may have. This year the currency has touched highs of around R12.40/$ and lows of around R14.20/$. Even though at the end of October the rand was showing a depreciation of only 2.4% for the year to date, the depreciation could have been more severe during the year, depending on when you needed the money. Daniel Buntman, head of international banking at Absa Retail and Business Banking, says it makes sense to allocate some savings to the foreign currency you anticipate needing to cover future expenses. A Business Times Money survey of the foreign currency accounts offered by the big four banks, Absa, Standard Bank, Nedbank and First National Bank, shows that the type of foreign currency account available depends on how much money you have to save and what your needs are. You can c...
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