Singaporeans Flock to Foreign Currency to Lock In Top Interest Rates
- Foreign currency deposits rose 13% year-on-year in Dec.
- US dollar placements seeing the strongest forex inflows
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Singaporeans are increasingly turning to foreign currency investments to take advantage of the strong local currency and protect their cash from inflation.
Their investment tool of choice is the humble foreign currency fixed deposit. The product is seeing a surge in popularity in the city-state as banks try to attract investor cash by offering bumper interest rates of as high as 5%, which compares with about 3% to 4% on a normal fixed term deposit.