I have a relative in Japan. His mother-in-law wanted to sell a couple of her homes and put the money in bank accounts that have higher interest rates abroad. Is this legal? and how should she go about it? Which country would be ideal to invest in? Indonesia? Philippines? Malaysia?
2007-08-25 03:24:21 · 4 answers · asked by confused 1 in Business & Finance ➔ Personal Finance
it legal i have a sister in law that does it but once like poster three said she lost money because of the exchange rate!!!
2007-08-28 12:37:32 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Sure it's legal. However (and this is important), your return on investment must take into account BOTH the interest on the investment and the exchange rate between the two countries. If you are in Japan and want to invest in the US, you first have to exchange yen for dollars at the current exchange rate, then invest the dollars. Eventually, you will have to convert the dollars (principal and interest) back into yen at whatever the exchange rate is at the time you convert back. You would earn the higher interest rate, but you could either lose or make money on the exchange of currencies.
2007-08-25 04:00:55 · answer #2 · answered by Tomel 3 · 0⤊ 0⤋
That would depend upon Japanese law, a subject of which I have no knowledge whatsoever. However, one guideline is pretty much universal: The higher the rate of return, the higher the risk involved.
2007-08-25 03:29:46 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You bet . . . research Carry Trade - same principle.
2007-08-25 03:27:57 · answer #4 · answered by CHARITY G 7 · 0⤊ 0⤋