Understanding foreign currency accounts (USD)
Not every bank account in Mauritius holds just Mauritian Rupees.
You can also open a foreign currency account (often called a USD account or FCY account) that lets you hold money in US Dollars, Euros, or Pounds. As you’d probably guess, the US Dollar is the world’s most traded currency and the most popular foreign currency account type here in Mauritius… So we’ll use it as our main example in this discussion.
Let's take a closer look at what these foreign currency accounts are all about… what they're designed for and why investors use them.
What is a foreign currency account?
Think of it as a regular everyday bank account… The only big difference? It holds another currency (like US dollars) instead of Mauritian Rupees.
So if someone sends you USD, it stays as USD in your account. When you send money out, it goes out as USD too… no automatic conversion is needed every single time.
Why do some investors open one?
So if a foreign currency account is just another bank account… why do investors bother opening one? Simple. Most of us here in Mauritius earn, spend, and save in Mauritian Rupees. But when you want to buy international shares, ETFs, or other investments, they're usually priced in US dollars.
That's where a foreign currency account becomes useful… It gives you a place to hold your US dollars until you're ready to use them. For example, you might convert some of your savings from Mauritian Rupees into US dollars and keep them in your foreign currency account. Then (when you're ready) you can easily transfer those funds to your investment platform to buy shares, ETFs or other international investments.
Basically, the foreign currency account acts as a bridge between your Mauritian Rupees and your international investments.
What can you do with your US dollars?
Once your money is sitting in your foreign currency account, you have a few different options.
Keep it as cash
You can just leave the money sitting there as cash… Some USD accounts in Mauritius pay a bit of interest (especially if you keep a decent balance), while others are more for easy transfers.
Place it in a fixed deposit
If you won't need the money for a while, some banks allow you to place your US dollars into a USD fixed deposit.
In return for leaving your money with the bank for an agreed period, you'll usually earn interest. The trade-off is that you won't have immediate access to those funds.
Invest it
A lot of people eventually choose to invest their US dollars instead of leaving them as cash. The most common options include US ETFs, shares and bonds.
We cover these investment options (and more) in the Investment options available to Mauritians category.
Pou résumé
A foreign currency account simply lets you hold money in US Dollars (or other currencies) instead of Mauritian Rupees.
The account isn’t an investment on its own… it’s more like a useful tool or bridge. Great if you receive money from abroad, plan to invest internationally, or have future expenses in another currency.
Remember… holding USD cash is different from actually investing those dollars. What you decide to do with the money next is what really shapes your journey.