As the pound falls to an all-time low against the American dollar, many people aren’t aware that offshore bank accounts can potentially mitigate against financial exposure through volatile exchange rates.
There are several countries where British nationals can open bank accounts that offer the ability to hold multi-currencies. This provides flexibility – and peace of mind – as any currency held can be switched instantly to another currency, for example Sterling to Dollars. In fact, any world currency is possible. By having this type of bank account, an individual can quickly move funds as different eventualities occur that cause exposure and financial risk, as well as ensuring money is kept in a currency which has a high value.
It is also possible to open a corporate bank account, which is especially relevant if you are a company that trades using foreign currency to sell or purchase goods. It can protect you should you need to pay invoices agreed months ago, when the sterling was in a much stronger position. By having your cash already held in dollars, it stops goods becoming considerably more expensive than having to pay through more traditional routes.
Example of countries where it is possible to have a personal and corporate bank account include Seychelles, Mauritius, Switzerland, Belize, Latvia and St. Vincent & Grenadines.
The advice we give to individuals and companies is to always be prepared for various eventualities. This is one way that can help to safeguard cash against devaluation.
For more information, contact a member of our trusted team today.