Key Points:

• Timing is crucial when it comes to capturing good currency rates.
• Holding frequently used currencies can help save money on transactions and protect against unfavourable exchange rate fluctuations.
• This can also facilitate foreign currency investments and bring additional savings.
• Multi-Currency Account allows you to hold different foreign currencies within the same account so you can easily take action when the need arises.

Keen to explore market opportunities with greater assurance?

Beyond travelling and transacting on global payment platforms, experienced investors who manage their finances across multiple currencies understand the uncertainty of fluctuating exchange rates.

While there are some currencies that are considered relatively stable, an open economy means that their value can still be affected by changes in the global market.

Many factors can impact a country’s or region’s currency. Whether it is an announcement of higher interest rates or an unstable political environment, a currency’s strength can change overnight.

Understanding these forces will help you take measures to protect the value of your investment against currency depreciation.

How to Gain from Favourable Forex Rates

There are many ways of managing  internationally-traded money, so that you can gain from the dramatic swings of the currency market. Here are 3 ways you can work changes in currency rates to your advantage.

If you have plans to invest in a specific market, start keeping a lookout for favourable rates so that you can build funds to kickstart a portfolio in that market’s currency.

Take for example, investors planning to invest into the US market should have taken advantage of the favourable rates in Q4 2023 when Rupiah gained value (relative to the USD). Collection of USD then would have helped them build up their funds and protect them against an unfavourable position when the USD gains ground again, and in some cases, they might also benefit from the currency fluctuation when they convert back to Rupiah.

If you have specific currencies you use frequently, you can tap into good foreign currency rates to make the most out of your money.

Look at where you travel to frequently for business or holidays, or even where you favour online shopping at to identify and spot which currencies to hold.

3. Save on Transaction Costs

Accumulating funds in the currency of the foreign market you are invested in when the rates are good can help you save on transactional costs down the road.

For instance, if you had a property overseas and had a fixed loan repayment every month, paying from a foreign currency fund created when rates were good will help to guard against the uncertainty of exchange rate fluctuations.

Ready to Start?

A simple way to take advantage of favourable foreign currency rates is through a foreign currency Mutual Fund or simply buying and holding foreign currency.

Having a Multi-Currency Account enables you to hold different foreign currencies within the same account.

Remember that it is all about timing when it comes to capturing good rates. Keep a lookout for the right moment to increase the real value of your funds.

DISCLAIMER

This publication is distributed by PT Bank DBS Indonesia (DBSI). DBSI is licensed and supervised by the Indonesia Financial Services Authority (OJK). This publication is not and does not constitute or form part of any offer, recommendation, invitation or solicitation to you to subscribe to or to enter into any transaction as described, nor is it calculated to invite or permit the making of offers to the public to subscribe to or enter into any transaction for cash or other consideration and should not be viewed as such.