“We live in a global village and families and business executives are increasingly on the move, but opening an offshore bank account to manage your affairs and ensure that money is available in a chosen currency wherever you are in the world no longer needs to be a headache,” said Standard Bank head of International Personal Banking, Michael Nudbichler.
In the current climate, global citizens need to better preserve the value of their money by holding funds and having transactional ability in a preferred foreign currency. An offshore bank account within the ambit of an over-arching financial plan is the solution.
“If exchange control regulations are complied with, rand can be deposited and then converted without having to be physically in the offshore jurisdiction,” said Nudbichler.
However, offshore banking entails careful planning and ensuring that the plan fits in with long-term goals.
The key is to start early to reap the rewards of an offshore strategy, notably when it comes to the high costs of converting currency every time you have to make an offshore transaction.
“For example, if you know when a child will graduate and that you may want to send them overseas, then it is important to map that out over the next number of years. You will want to ensure that you have sufficient funds in the offshore jurisdiction well before this event happens to avoid having to convert one large amount at a given time,” explained Nudbichler.