Foreign Currency Bank Accounts in Australia

Discussion in 'Markets & Economies' started by hawkeye, Feb 19, 2011.

  1. hawkeye

    hawkeye New Member Silver Stacker

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    I've been seeing stories on China and thinking that it will be heading for a hard landing sometime in the near future and that commodity prices will go with it and the Aussie dollar will take a dive.

    I'm wondering, can you hold the money in your bank account over here in a foreign currency, such as the British Pound or US Dollar? Does anyone know anything about this? Is it possible?
     
    hawkeye, Feb 19, 2011
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  2. JulieW

    JulieW Well-Known Member Silver Stacker

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    I think HSBC and Citibank have this option. You nominate the amount of each currency you hold in your account. There is no govt guarantees there though. If those branches of the business go under your currencies, foreign and domestic disappear.
     
    JulieW, Feb 19, 2011
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  3. Fe Mike

    Fe Mike New Member Silver Stacker

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    Most major banks hold For.Curr accounts. Late 80's early 90's there was a min. balabce of around 10k, varied by bank. V useful for foreign trade to avoid exposure to random shifts in rates, esp for larger tranasctions. For smaller transactions, also useful; because your margins aren't being eaten by the switchback. Assuming you're going to keep mving money around, it's good option. Westpac, NAB, CBA all offered it back in the day.

    If you're looking to store value, you're in the right place!
     
    Fe Mike, Feb 20, 2011
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  4. bron suchecki

    bron suchecki Active Member Silver Stacker

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    Gold and silver are "foreign" currencies, you don't want to hold some other paper. Commodity prices may drop with a Chinese crash, but PMs should hold or not drop as much. Consider USD 1350 gold price with an Aussie exchange rate drop from 1.00 to 0.60 as China stops buying our iron ore means AUD gold price from $1350 to $2250. There is your simple hedge against Aussie crash and no exposure to banks.
     
    bron suchecki, Feb 20, 2011
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  5. hawkeye

    hawkeye New Member Silver Stacker

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    Assuming gold price doesn't drop significantly as well of course.

    I have plenty of gold. This is sort of a hedging thing and sort of looking to buy up things cheap(silver, maybe gold) if there is a big swing. tbh, don't really want anymore gold right now, I really do have far, far more than my fair share. :)

    I want something totally liquid for now and while the US dollar may fail in the long run, in the very short term it could be a good bet. I would be looking to dump them as soon as a swing occurs, which I believe has to happen at some point, probably not in the too distant future.
     
    hawkeye, Feb 21, 2011
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