This is a good question!
In the usual context, it’s used to mean a bank account held in a non-native currency. So, if you had a foreign currency account at your bank, it might contain a sum in say US dollars as opposed to Australian dollars.
Why would you do that? There might be many reasons.
Take, for example, where you’re receiving a payment in US dollars from a client but also plan to make a purchase, in US dollars, in a few weeks or months’ time. In some situations, it might make sense and be cost-effective not to convert the inbound dollars into Australian dollars then back again when you need to pay your US supplier. Instead, it might be sensible to hold your funds in US dollars until you need them.
There are many other such examples.
However, at Forex Group we know that sometimes the bank fees associated with holding a foreign currency account can be expensive. That might well offset some or even all of the logical advantages of holding money in foreign currency for a period of time – as outlined in the example above.
So, do you have an alternative?
Yes, you do – it’s called our services.
As you can probably imagine, we constantly hold our clients’ funds in different currencies as we’re making transactions on their behalf. So, in the above hypothetical situation, we may be able to offer you a very cost-competitive alternative to a foreign currency account.
This is really all about understanding your in-depth business operations and forex requirements. If we know what you're planning, we’ll be much more likely to be able to offer you effective and cost-effective alternatives to simply paying out a fortune in bank fees.
We know very well though that it’s easy to make promises and ultimately the only thing that counts is what we’re able to deliver. So, why not kick things off by talking to us about your foreign currency account requirements?
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