I have a HSBC account in Indonesia where I have had rupiah parked for a couple of years - I just found out today that I can move those rupiah into 9.5% interest per year time deposit for one year- no risk, great return .

So. Why shouldn't I just transfer all my cash and liquidate my stocks - all in US dollars -and transfer it all to my HSBC account in Indonesia , convert to rupiah ( at a great exhange rate ) and put in a one year, risk free, 9.5% interest account? Is there any down side ?

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Why shouldn't I just transfer all my cash and liquidate my stocks - all in US dollars -and transfer it all to my HSBC account in Indonesia , convert to rupiah ( at a great exhange rate ) and put in a one year, risk free, 9.5% interest account? Is there any down side ?

are you trying to BS us? in dozens of your postings you present the impression that you have at least some basic financial knowledge but you are not aware how the Rupiah has fared vs. US-Dollar?

during the last three years IDRUSD = -31%, last 12 months = -21%

give us a break please!

Naam.

I am aware that Rp has depreciated 20% - but is it likely to fall even further given the state of the US dollar ? Surely a decent chance that it will actually appreciate vis a vis the dollar in which case 9% return is very tasty ?

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Naam.

I am aware that Rp has depreciated 20% - but is it likely to fall even further given the state of the US dollar ? Surely a decent chance that it will actually appreciate vis a vis the dollar in which case 9% return is very tasty ?

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read Rupiah restrictions ExpatJ (especially repatriation) and don't forget 30% Indonesian income tax. HSBC should advise you in writing how to proceed!

years ago i held Indonesian government bonds -when the yield was 14.5% and IDR rather steady- a flat withholding tax of 20% applied. but to convert restricted IDR into USD every coupon payment took 3-4 months to repatriate. biggest hassle was to get out the initial investment because i did not hold the bonds till redemption.

if you want a risky high yield investment without any tax or repatriation problems then you should take a look at BRL (11-12%).

by the way, "state of the US Dollar". do you believe the gloom&doomers?

If it seems too good to be true, it probably is!

ExpatJ: You must stop smoking that Bali stuff!