Investing money in a currency of a country which is not their own is very popular with many investors. This is because they are lured by financial advantages, such as the chance of higher returns. But it is for exactly this reason that investing in foreign currencies often involves certain risks. In this article you will find the information you need to know when investing in other currencies. It will help you find the foreign currency investment which best suits your needs and better evaluate the currency risks for your investment.
There are a number of ways to invest in foreign currencies: for example, by buying US dollars or euros directly and depositing them in a relevant foreign currency account with your bank – or even keeping them in cash. You can also hold time deposits in foreign currencies. But there are even more investment options, such as funds, currency ETCs, foreign currency bonds or shares.