Would you be better or worse off to have your wealth in more than one country's currency?


If you have a large amount (lets say 50%) of your wealth tied up in a single foreign currency and your home currency depreciated what would be the effects? Would you be better off or worse off than someone with all their wealth in their home currency? What are the variables that would determine if you are better or worse off?


Your wealth in terms of home currency will increase whereas in terms of foreign currency it will decrease. If your home country prices remain the same, it means your real wealth has also increased. So, broadly, it depends on when and where, home or foreign, are you going to use your wealth for purchases and what happens to their respective price levels.

Answered by
Guest Answered by
Associate Professor Rajesh Singh
Last updated on
March 9, 2018

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