Seeking Advice From Travelers: Currency Diversity

SEOBlackHat.com had an interesting, off-topic post today on Online Banking and Currency Diversity. My interest is more in the latter. As an American who’s sat idly by, watching the U.S. dollar fall into the worst tailspin in recent memory, the article started me thinking on whether or not it’d be a good idea to open an international account in, say, British pounds, Euros, etc.

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There’s no topic about which I’m more clueless than global currency exchange, so please let me know in the comments if this would be a pointless exercise in trying to recoup/save a little of the plummeting U.S. dollar I have stashed away.

If this is worth looking into, anyone know how to go about doing it? Can I just call up [fill in your favorite online bank here] and say, “Please convert my account to [fill in stable (i.e. not U.S.) currency here]?

On a side note, are there any additional benefits – particularly for travelers – to having an account in some other currency?

I’d appreciate any advice!

Founding Editor
  1. The easiest way I know to keep some money in another currency would be to change your dollars using a Paypal account. I often keep dollars and pounds at the same time because I sell to British customers on eBay.
    Another option might be to hit up your local foreign exchange and just put the cash in your mattress.
    Still, I have to believe that a trusted mutual fund would be a safer long-term bet. You might even find one that diversifies its investments with European or Asian companies.

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