Multicurrency Deposit: Make the Unpredictable Predictable

Because forex markets are extremely volatile, depositors face many thorny issues. Which currency is safest to keep your savings? How to mitigate exchange rate risk inherent in foreign-currency deposits?

A multicurrency deposit is one of the most effective solutions designed to significantly reduce the risk of exchange-rate movements. As a multicurrency deposit holder, you can convert funds from one currency to another. This is a great way to avoid financial loss stemming from currency depreciation (a decline in the value of one currency as seen against the other). The bottom line is that the maturity date of your deposit remains unchanged and you do not lose any interest accrued. 

Your deposit can be held in multiple currencies, thus enabling you to manage different foreign currencies in a single account. We offer a variety of currencies that are eligible for multicurrency deposit account: the Latvian Lats (LVL), the U.S. Dollar (USD), the British Pound Sterling (GBP) and the Euro (EUR). For your convenience, you may determine the right proportion of currencies to be held in your deposit account -- the proportion may be as you like. The deposit is clearly a simple and very convenient tool for those who are serious about diversifying foreign-exchange risk. In addition, you can independently manage your savings.

One more benefit that you can gain from the deposit is that you are able to respond timely to market changes. This is extremely important if you really want to use your multicurrency deposit effectively. If you cannot convert the funds through internet banking or visit the bank personally, you may deliver a remote currency-conversion order to your private banker.

And furthermore, you won’t need to track forex market trends and movements. Your banker (acting under your instructions) will get in touch with you as soon as the exchange rate reaches the definite level you have specified. Thus, you will be able to make a well-thought-out decision as to whether to hold open currency position or to immediately give a currency conversion order.

For more detailed information, please contact your private banker.