Can you use travellers cheques to hedge against our dollar falling?

Can you use traveler’s cheques to hedge against our dollar falling? I read an article on something similar. Do they have expiry dates?

Interesting idea.

Wouldn't the Buy/Sell spread be a killer? Assuming no commissions.

Also you are at the mercy of the TC provider being a market maker that will follow currency changes promptly.

Cheers,

Kenny

You could, but as has been pointed out, spreads are nasty. Also, they don't pay interest either.

How is it normally done? Opening a foreign bank account?

moXJO said:

How is it normally done? Opening a foreign bank account?

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When I opened my first foreign account I just walked into the bank, (which was in Hong Kong several years ago) and opened the account in person, all I needed was my passport and a local PO Box which I got through a corporate services firm.

There are a few OS banks that you can open an account via there website and send in your docs to them, have not done this myself, I have always gone to the bank or used a local registered agent to do it.

Also look at HSBC www.hsbc.com they offer accounts that you can hold foreign currency in.

or look at this company, www.capitalconservator.com they do offshore accounts