Multi-currency accounts are bank accounts that allow their owners to hold funds, as well as send and receive payments, in different currencies. In practice, they mimic a structure featuring multiple bank accounts, but with a single account number.
Multi-currency accounts for international businesses
For exporters, international merchants and companies operating with different currencies in general, these corporate accounts provide a convenient alternative to having different bank accounts in all the countries where they are present:
- Multi-currency business accounts spare the owner the time and effort necessary to comply with the requirements of opening bank accounts in different countries.
- They allow the company to centralise all its payments using one account, therefore improving the efficiency of its transaction management and control over its liquidity and cash flows.
- This simpler access to all currencies provides more flexibility when it comes to managing FX risk and/or implementing currency diversification strategies like cash pooling.
With a centralised platform to manage all its currencies, the company might also implement automatic solutions like Dynamic Hedging to protect its margins against FX volatility.