Foreign Currency Account

Foreign Currency Account Meaning:
In banking terminology, the term Foreign Currency Account refers to a type of financial account at a financial institution that has funds deposited that are not denominated in the local currency or in the account holder�s domestic currency. A Foreign Currency Account can usually be set up onshore in one�s home country or offshore in a foreign country.

For example, a Foreign Currency Account or FCA might suit an investor who wishes to diversify their portfolio into one or more currencies other than their domestic currency. An onshore Foreign Currency Account could also be used to hedge an overseas investment position against fluctuations in currency exchange rates without having to transfer funds offshore. Furthermore, opening a Foreign Currency Account might suit a person or company that is receiving income in a foreign currency and does not wish to convert the income into their domestic currency, and/or if they wish make payments in that foreign currency to a third party.
Related Rates
  • List of Foreign Currency Savings Account Rates by country
  • List of Currency Accounts by country