How to Protect Your Wealth from Currency Fluctuations as an Expat
Global Financial Consultants
By Daniel Dal Molin
Living in Singapore can be an incredibly rewarding experience. The city offers a high quality of life, a stable economy, and access to some of the best financial services in the world. Yet for many expatriates, one challenge often flies under the radar: dealing with the effects of currency fluctuations. Whether you are paid in Singapore dollars (SGD) or send money home regularly, shifts in exchange rates can make a real difference to your income, savings, and long-term financial goals. Here are some practical ways to protect your wealth from currency risk while living in Singapore.
1. Understand How Currency Fluctuations Affect You
Exchange rates move constantly due to changes in interest rates, inflation, trade balances, and global events. For expats, this can affect several areas of your finances:
Your income: If your salary is in SGD but your main expenses such as a mortgage or school fees are in another currency, exchange rate changes can reduce your spending power.
Your investments: If you hold assets or pensions in other countries, their value can rise or fall purely because of currency movements, even if the underlying investment has not changed.
Remittances: If you regularly send money home, the amount your family or dependants receive can vary depending on exchange rates at the time.
Knowing where your currency exposure lies can help you take control and make better financial decisions.
2. Diversify Your Currency Holdings
A simple yet effective strategy is to diversify your currencies. Instead of keeping all your money in one currency, consider holding a mix such as SGD, USD, GBP or EUR. Most major banks in Singapore, including DBS, HSBC, and Standard Chartered, offer multi-currency accounts that make this easy to manage.
Having funds spread across different currencies can help reduce your risk. If one currency weakens, the others may help balance things out. For example, if the Singapore dollar falls in value, your foreign currency savings could be worth more in SGD terms.
3. Consider investing in Singapore and the Region
Singapore’s position as a regional financial hub gives you access to well-regulated markets across Asia, including Japan, and Hong Kong. This provides you an option to diversify further while staying close to home.
It is also important to consider the currency in which you intend to spend your investments in the future, rather than focusing solely on the currency in which you earn. If you anticipate retiring abroad or funding long-term expenses in another country, allocating a portion of your portfolio to that future spending currency can help lower conversion costs and mitigate long-term currency risk.
4. Seek Personalised Financial Advice
Every expat’s circumstances are different. Your exposure to currency risk depends on where you earn, spend, and plan to retire. A financial adviser who specialises in working with expatriates in Singapore can help you build a strategy that suits your lifestyle and long-term goals. They can also advise on tax-efficient ways to manage your wealth across multiple currencies and countries.
Final Thoughts
Currency fluctuations are part and parcel of living a global life, but they do not have to undermine your financial wellbeing. By understanding your risks, diversifying your holdings, and planning ahead, you can protect your wealth and make the most of your time in Singapore with confidence and peace of mind.
Ready to take control of your finances? Have a chat with me to learn how you can strengthen your finances and create a confident future across borders.
Daniel Dal Molin is an experienced financial adviser specialising in retirement planning for expatriates. He helps expats plan for the medium and long-term, advising them on the best investment strategies to build and preserve wealth while navigating the complexities of international tax laws and market conditions.
Daniel is an Authorised Representative of Global Financial Consultants Pte Ltd – No: 200305462G | MAS License No: FA100035-3)
To learn more about how Daniel may be able to help you, please contact him:
Phone number: +65 9058 9568
Email address: daniel.dalmolin@admin.gfcadvice.com
LinkedIn page: https://www.linkedin.com/in/daniel-dal-molin-mfinplan-mba-crpc-36322314/
Click here to book a complimentary consultation: Book here
General Information Only: The information on this site is of a general nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision.
*Please note that Daniel Dal Molin is not a tax agent or accountant and none of the content outlined here should be taken as personal advice. You should consult your tax agent and financial adviser to review your current personal finances and financial goals to consider whether this strategy is appropriate for you.