QUESTION: Should you open a bank deposit in multiple currencies?
Opening bank deposits and savings accounts in several different currencies is a classic tool for reducing investment risks. The main goal of such diversification is to protect your capital from sharp fluctuations in the exchange rates of a specific national currency and geopolitical factors. If one currency falls in value against others, assets in alternative currencies can compensate for these losses, keeping the overall purchasing power of your savings at a stable level.
However, you should approach this tool rationally, having previously assessed all associated costs.
Experts do not recommend opening accounts in exotic currencies just "just in case" without a clear understanding of their economic nature. Do this only for specific life goals and predicted future expenses. It is important that the structure of your portfolio reflects your personal financial strategy rather than following momentary panic moods in the market. A well-constructed multi-currency basket should bring peace of mind and protection, rather than turning into a source of extra hassle and losses due to commissions.