I plan to open 1 or 2 foreign currency fixed deposit accounts in Singapore.

Starting to look around, I was very surprised by the rate with New Zealand dollar. More than 6 % !

This is actually a strange country... To keep inflation between 1 and 3 %, the Central bank has such a rate...

And of course the currency has gained against Euro.

So why not buy NZD from EUR, and open a fixed deposit, let's say for 6 months ? And enjoy a good return. There is little risk that the Central bank would cut its rate with an axe, and that the currency would crash in such a little period of time.

What do you think ?

Personaly I have no expertise or opinion on this, but the bank I use in it's latest currency analysis called the NZD "an accident wating to happen".

Sophon

Your strategy looks okay to me.

Go for it.

Little downside with that currency play.

In high yield currencies, I like Sterling, NZ$, and at current levels, even the Indo Rupiah looks nice and fat.

one of our CDs in NZL is currently getting 8.8% for a 12 month term.

And the beauty of Singapore is no tax on interest for non residents

6.6% is available for 30 day Term Deposits, which seems more sensible than committing to 12 months. A lot can happen to a currency in 12 months and a return of even 10% achieved on CD will look pretty sick if (or rather when) the NZ$ returns to its historic level. Dealers use the NZ dollar as a safe haven, and they have more invested in NZ than the NZ gov have in reserves, so beware.

Good luck. Rick

6.6% is available for 30 day Term Deposits, which seems more sensible than committing to 12 months. A lot can happen to a currency in 12 months and a return of even 10% achieved on CD will look pretty sick if (or rather when) the NZ$ returns to its historic level. Dealers use the NZ dollar as a safe haven, and they have more invested in NZ than the NZ gov have in reserves, so beware.

Good luck. Rick

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I think that's 6.6% annual percentage yield, not for the month.