A multi-currency account is useful to simply hedge against bank collapse......or to protect you from a devaluation by the European Central Bank that will make you lose value in your savings. It is then more than interesting not to have all your money in Euros and therefore to have a multi-currency account to protect your money and your savings.
Having money in another country gives you peace of mind. If we take the recent example of Greece in 2015, a country that was extremely indebted, users have lost confidence in the State's ability to meet the challenge of the crisis. The Greeks panicked and withdrew their money from the banks and it was the bank collapse where many lost a lot of money. If, unfortunately, this kind of situation could happen (we'll explain why it's possible), it's good to think that we have money safe in another country, quite simply.
On the other hand, in Georgia it is investor protection that counts. You're protected! (2nd in the Forbes and Doing business 2018 ranking for investor protection). The Georgian banking system is also very protective and does not allow its customers to be punished for an administrative error for example. We have all contractors around us who have suffered this kind of damage. In Georgia there is no problem with The IRS. IRS will not be able to do anything, withdraw anything, or seize your company bank account. You're elusive! No fear on a possible administrative error that can potentially loot your cash and at the same time sink your company.
Diversify your money is a solution to protect yourself from this kind of unpleasant situation: opening a personal bank account in a country other than the one where your company is located. It's perfectly legal to have an offshore account if you declare it to the IRS. It should be noted that Georgia is one of the countries that has not signed the OECD' AEOI agreement (Automatic Exchange of Information) or on the TIEA (Tax Information Exchange Agreement).
Do I have to be resident in Georgia to open a multi-currency bank account? No! A Passport is enough and you just have to say which means of payment you want (type of bank card, visa, mastercard, etc...). You make a deposit and it's over. Then, you just have to declare to your tax authorities this personal bank account, it's 100% legal. It's your only obligation to show that this money is not hidden!
Swiss Franc, Yen, Australian or Canadian U.S. Dollar, Norwegian Crown NOK (a very strong currency, a non-debted country whose currency is based on this country's huge oil reserves), etc... are strong and very stable currencies.
Having a multi-currency personal bank account, in Georgia is very common. your bank will propose it to you automatically. Having money diversified in euros, dollars, nok... it is also interesting to protect against exchange rates. When you know that the European Central Bank runs the banknote board whenever it wants (for the moment the Euro remains strong but the risks of devaluation are real in the near future). With the Brexit in particular, we could have seen a break-up of the Euro Zone and some countries in the Zone returning to their currencies. That did not happen, fortunately, but it could happen, clearly. A multi-currency account allows you to warn yourself against these financial developments, against a collapse of the euro, and as they say in France it is wiser "not to put eggs in the same basket". We can only advise you on the risk of having all your money invested in a single currency. In Europe, Italy, Spain, Portugal, and Greece are countries in great difficulty. And unfortunately, so is France...
And don't wait for a big devaluation. Because European banks, will then forbid you to open a multi-currency personal bank account abroad. Europe, when it sees hundreds of thousands of people wanting to open bank accounts abroad, will block this kind of operations and all international transfers. While if you already have a multi-currency bank account, there will be no problem, the transfer will be possible.
You will also have the opportunity to make self transfers to your multi-currency bank account, simply converting your money into the currency you want. You transfer yourself 10 000 euros by asking for a conversion in NOK for example, it is easy and fast. Of course, you will pay transaction and conversion fees which are different depending on the banks. In Georgia these fees range from 0.1% to 0.2% of the amount.
The most secure currencies are those of Norway, Hong Kong, New Zealand, Switzerland, Australia, Singapore...There are others of course but these are among the very best. By investing in a multi-currency account, you diversify across several continents. And that's good! (Remember "don't put all your eggs...")
We also wanted to point out something else. This so-called "Bail In" Act. The information was passed discreetly. From January 1, 2016, customers' bank accounts will be able to be drained to help rescue their bank, according to this European directive on the recovery of banks and the resolution of their defaults (BRRD).
In 2008 during the Subprime crisis, it was the States that saved the banks, today it's over! It's the savers who are going to save the banks that screwed up.
In 2013, the Central Bank of Cyprus sets a precedent. As part of a European rescue plan for the island's financial sector, CBC accepted "punishments" of 47.5% on more than 100,000 euros deposits. A decision that had provoked the anger of Cypriots, many of whom rushed to withdraw their money from ATMs in their banks.
Since Europe set up this procedure of "Bail-In", or "internal bail-out", in opposition to "Bail-Out", or "external bail-out". Until now, bankrupt banks have turned to shareholders and then creditors. Now, it will be the depositors who will be solicited because "it is better, in the event of bankruptcy, to lose 15-20% of its deposits than the totality, as before". Wow!!!!!!!!!!
In short, you are not the master of your money if the European banking system is lacking. Stick to the money of savers at 15 to 20% ! That's still a lot! Don't you think?
Based on all this information and facts, ask yourself the question. Should we reconsider the money and financial investments you currently have in Europe?
To summarize open a multi-currency personal bank account in Georgia allows you to:
