Emerging market currencies have seen a wave of depreciation, and the Malaysian dollar is no exception. Today the MYR has fallen below 4.58 against the USD and the MYR has fallen below 3.20 against the SGD. If you don’t have confidence in the Malaysian dollar, then you may want to consider putting your money in a foreign currency time deposit account.
Foreign Currency Fixed Deposit (FCD) is a type of time deposit account that allows you to deposit foreign currency. You can convert your money into foreign currency and place it in a time deposit.
This not only preserves the value of your money, but also allows you to earn interest on your time deposit. However, it is important to note that you will lose money if the value of the foreign currency you deposit depreciates during the time you deposit it. There will also be exchange rate differences when switching foreign currencies, so you will definitely lose money by switching exchange rates frequently in the short term.
All major banks in China provide foreign currency time deposit services. Yen, Hong Kong Dollar, Singapore Dollar, Canadian Dollar and Chinese Renminbi.
Generally, there is a minimum deposit amount for foreign currency time deposits, such as US$1,000, AUD1,000, GBP1,000, RMB10,000, SGD1,000, etc. You can choose to deposit for 1 month to 12 months. Interest on foreign currency time deposits will be calculated on a daily basis, but interest will be paid in a lump sum at the end of the term.
According to the CIMB website as of 9 September 2022, you can earn 2.40% interest for 1 month, 2.95% for 3 months, 3.35% for 6 months and 3.70% for 12 months in USD.
(No investment advice, information is purely for sharing)
