Dave Vang, finance professor at the University of St. Thomas Opus College of Business, recently spoke with CFO.com about the growing interest among U.S. companies in bank accounts that hold foreign currencies. He said these accounts can help businesses manage currency risk and adapt to today’s shifting global economy.
From the article:
... Dave Vang, finance professor at the University of St. Thomas, noted that foreign currency accounts have become increasingly popular due to ongoing globalization over the last few decades. In the past, though, it was primarily businesses based in countries outside the United States opening foreign currency accounts here. That appears to be flipping now.
“Back in the ’80s, for people in other countries who used to do a lot of business in the United States, it was a common practice to have two accounts: one in their home country currency and then another in U.S. dollars,” Vang said. “It kind of reduced some of the currency risk and also made it easier if they’re getting payments.”
U.S. Bank’s El-Yafi again pointed to geopolitical uncertainty as the reason American companies are seeking out foreign currency accounts. “Take a look at what’s happening in the news,” he said. “We don’t know what’s going to happen tomorrow. The level of anxiety around doing business internationally is probably at an all-time high, triggered by tariffs but there are a lot of other reasons why.” ...
