Foreign currency account

[Candystore]

If I open a foreign currency account with an SA bank, it does not meet the definition of offshore, correct? I mean, the funds are being held by Bank X here in SA, so not offshore, simply in a foreign currency.

Or am I misunderstanding?

 

[r4nd0m]

What does the definition of offshore have to do with anything?

Yes, you get local bank accounts that hold foreign currency. FNB has a few. Shyft is also a currency store. Many other banks and institutions too.

What is your intentions? Is this tax related?

 

[Candystore]

What does the definition of offshore have to do with anything?

Yes, you get local bank accounts that hold foreign currency. FNB has a few. Shyft is also a currency store. Many other banks and institutions too.

What is your intentions? Is this tax related?

I asked Standard Bank to assist in opening an offshore acc and they offered a foreign currency account.

 

[r4nd0m]

Not sure of Standard Bank's product suite, apart from Shyft which is pretty much a foreign currency exchange/store/transfer. You can check it out on your phone's app store and download the app.

Shyft global money app

Forex, investments, travel solutions and international payments

getshyft.co.za

If you're investing and want to actually send your money offshore, the best way would be to actually transfer it to a broker over yonder. Interactive brokers is one of the brokers some of the forum members use. You can use shyft to convert your rands to dollars and then send it overseas.

You could also use Shyft for currency speculation purposes I guess, but it would be better to go through a forex broker.

 

[Zukat]

If I open a foreign currency account with an SA bank, it does not meet the definition of offshore, correct? I mean, the funds are being held by Bank X here in SA, so not offshore, simply in a foreign currency.

Or am I misunderstanding?

From the SARB perspective, the funds will be considered offshore as they are held in foreign currency and will form part of your foreign allowance, however from the physical location point of view, the funds will remain "onshore" with the SA local bank.

 

[Candystore]

From the SARB perspective, the funds will be considered offshore as they are held in foreign currency and will form part of your foreign allowance, however from the physical location point of view, the funds will remain "onshore" with the SA local bank.

If the dominoes all fall in SA, you will not be able to access those dollars or pounds though, correct? The platform (bank) through which they are held, will be gone. Again, worst case scenario.

 

[Zukat]

If the dominoes all fall in SA, you will not be able to access those dollars or pounds though, correct? The platform (bank) through which they are held, will be gone. Again, worst case scenario.

Theoretically yes, unlike US we don't have a Central bank backing the investor with a guarantee in case of retail bank bankruptcy. I looked into this at the beginning of the pandemic, but our banks are actually well-capitalized to avoid this scenario, but anything is possible.

 

[Candystore]

Theoretically yes, unlike US we don't have a Central bank backing the investor with a guarantee in case of retail bank bankruptcy. I looked into this at the beginning of the pandemic, but our banks are actually well-capitalized to avoid this scenario, but anything is possible.

Does the Reserve Bank not fulfill that duty?

 

[RiaX]

Standard bank shyft gives you access to off shore share trading.

It's like their autoshare for the jse shyft allows you to transact on NASDAQ

I bought my Pfizer shares hoping to be a billionaire and retire... atlas trading in dollars is super expensive.

 

[Speedster]

Does the Reserve Bank not fulfill that duty?

They have in the past yes, although there is no obligation for them to do so. I'm not sure if they'll guarantee foreign currency deposits though as that has never been tested