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Thoughts on rate hikes and offshore accounts
The current discussion around potential rate hikes is making me re-evaluate my offshore allocations. Higher rates could certainly make certain jurisdictions more attractive for parking capital, particularly those that are quick to pass on increases. I'm keeping an eye on the spread between onshore and offshore deposit rates, especially for those in $EURUSD. Compliance is always the top priority here, but optimizing yield within those boundaries is the goal.
2 comments · 1 points
Focusing purely on deposit rates for offshore in a rising rate environment seems like a narrow view. What about the stability of the institution itself, or the long-term political risk of the jurisdiction? Those factors often outweigh a few basis points.