Thursday, June 14, 2007

Investing in Foreign Currency Deposits

Dear Mr Tan,

What are your views about investing in foreign currency deposits, such as New Zealand dollar?

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REPLY:

Earlier this year, I wanted to invest in New Zealand deposit, as it offered an attractive interest rate. I spoke to a banker from that part of the world. He told me to be careful, as the NZD had already appreciated a lot.

I decided not to make that investment. Since then, the NZD had appreciated by another 5%. I missed that boat!

Many of the currencies, such as AUD and NZD, are at a historical high level. I have decided to keep my savings in SGD to earn 2.5% to 3%.
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3 comments:

Apple said...

I agreed that NZD had already appreciates a lot, but we wont know will it still up even more in the future or down. I got in mid of last yr, which I consider it already appreciated alot, but I was only thinking of putting it as long term investment.

However, if we are looking for a safe investment, with the interest rate of 7%(previously was only 6 something), wont it be a safer investment with higher return than government bond which only 3%? Let's say we are investing in NZD for yrs(long term), wont it be able to deduct away the exchange rate, etc?

p/s: anyway, I might missed any limitation of it coz I'm quite new in this investment too...

June 14, 2007 9:05 AM
Anonymous said...

Mr Tan,

With everything in all time high, what else can we invest in? Should we sit back now and wait for the next downturn before putting money in?

June 14, 2007 10:26 AM
Tan Kin Lian said...

I put my money in the money market fund to earn 3% per annum. The yield has now dropped to 2%.

I will wait for the market correction before investing my new money. But, I may have to wait a long time ..... as the market keeps going up.

June 19, 2007 5:09 PM

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