Invest in Foreign Currency
Investing in Foreign Currency
The South African Rand is a highly volatile currency which depreciates against the US Dollar year on year. While this does not bode well for the South African economy, it does create a unique investment opportunity for South African residents who wish to hedge against this Rand depreciation.
Whether you are looking to move abroad and are in the (sometimes-lengthy) migration process or if you are just looking for a long-term investment mechanism to grow your hard-earned Rands – foreign currency investment is a viable option for any South African resident over the age of 18 with a valid tax number.
How?
Each South African resident is entitled to a Single Discretionary Allowance (“SDA”) of one million Rand and a Foreign Investment Allowance (“FIA”) of ten million Rand, per calendar year. JP Blue will assist you in opening a Foreign Currency Account (“FCA”) in the currency of your choosing. This account will be opened in your name and is held locally by one of JP Blues preferred authorized dealers (banks).
Benefits?
– Your investment will not be affected by local currency fluctuations;
– You have the flexibility of investing in multiple currencies, including exotic currencies such as New Zealand Dollars, Norwegian krone, Canadian Dollars etc.
– You have the ability to convert the foreign currency into Rands at your discretion;
– There is no minimum balance required to open the FCA or to keep the account opened;
– There are no monthly account maintenance fees;
– You will have access to leading market commentary as well as a personal dealer to discuss the latest market trends.
– JP Blue will guide you through the process, providing you with feedback along the way as well as complete all necessary reporting requirements (Such as the balance of payment form required by the South African Reserve Bank.)