Foreign Currency Deposits
Foreign Currency Savings Account
Important Matters Concerning Foreign Currency Deposits
Exchange Rates
An exchange rate is determined by the difference in value between currencies of two different countries.
For example, how much Japanese Yen is required to purchase one US Dollar?
The TTM, or Telegraphic Transfer Middle rate, is Sony Bank's own reference rate, linked to fluctuations in the foreign exchange market.
The TTM is used to determine the TTS (Telegraphic Transfer Selling rate) and TTB (Telegraphic Transfer Buying rate).
- TTS (Telegraphic Transfer Selling rate)
- Exchange rate used when purchasing foreign currency
(TTM + Exchange Fee)
- TTB (Telegraphic Transfer Buying rate)
- Exchange rate used when selling foreign currency
(TTM - Exchange Fee)
Exchange Fees
Exchange fees are an additional cost incurred when buying or selling foreign currencies.
Check the current exchange rate and exchange fees
Weak Yen or Strong Yen?
Q I bought US Dollars when the rate was $1.00 = \100. Now, the rate is $1.00 = \105. What does that mean for the value of the Yen?
A The value of the Yen has fallen, and you will need an additional 5 yen per dollar to buy $1.00. In this case, the Yen is weak.
Depending on exchange rate fluctuations, Foreign currency deposits can make a profit or a loss when converted back to the original currency.
If the Yen is strong when you buy a foreign currency, you may make a profit, but if the Yen is weak, you may make a loss.
- Note
- Foreign currency deposits entail some risks, such as loss of principal in Japanese Yen.
Buying Foreign Currency
You can buy foreign currency at any time via our English online banking. Sony Bank's exchange rates are updated in real time.
- Diversify Currencies
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One way to reduce the risks involved with fluctuations in the value of foreign currencies is by investing in multiple foreign currencies, rather than a single currency.
- Diversify the Timing of Buying Foreign Currencies
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A common way to manage risk is by using the dollar cost averaging method, which diversifies the timing of your foreign currency purchases.
