- If income, savings and assets are in one currency, you depend on it entirely. Currency diversification reduces this risk by spreading capital across currencies and instruments.
- Currency can be held in different ways: deposits, replacement bonds, assets in hard currency abroad. Each has its own yield and its own restrictions.
- For Russian investors there are restrictions: as of 2026, currency credited after 9 March 2022 can be withdrawn from a Russian bank only in rubles, and older deposits have a limit of about $10,000.
- Income from overseas property is a form of currency diversification: the rental flow arrives in hard currency from another country and does not depend on the national currency's rate.
The question of currency matters to an investor more than it seems. You can pick an asset well and still lose if all capital is kept in one currency that depreciates. Currency diversification protects not against a bad asset choice but against dependence on one economy. We break down why to spread savings across currencies, how to do it and what restrictions matter.
Why spread across currencies
The rule is simple: if income, savings and assets are in one currency, you have not a portfolio but one big bet on that currency. When it strengthens, all is well. When it depreciates, it loses everything at once: savings and purchasing power on the external market. Currency diversification breaks this dependence.
It is a separate level of diversification that many forget, focusing only on asset classes. How the three levels work together is covered in portfolio diversification.
Ways to hold currency
| Instrument | Yield benchmark | Note |
|---|---|---|
| Currency deposit | 2–5.5% (2026) | withdrawal restrictions in Russia |
| Replacement bonds | 5.5–6.5% (2026) | coupons in rubles at the central bank rate |
| AAA corporate bonds | 6–8% (2026) | moderate risk |
| Assets in hard currency abroad | depends on the asset | diversification by country and currency |
Benchmarks are per open 2026 data. Each instrument has its own yield, liquidity and restrictions. Currency deposits and bonds are convenient, but they carry the bank's own country risk and regulatory restrictions.
Restrictions worth knowing
For Russian investors there is a separate layer of restrictions. As of 2026, currency credited to an account or deposit after 9 March 2022 can be withdrawn from a Russian bank only in rubles. For deposits opened earlier, the cash currency withdrawal limit is about $10,000. The restrictions have no defined end. So some investors hold currency assets outside Russia, where such restrictions do not apply.
Currency can be bought well, but if it cannot be freely withdrawn, it is not protection of capital but its freezing.
Property as currency diversification
Overseas rental property is not only yield but also a form of currency diversification. The rental flow arrives in hard currency from another country and does not depend on the national currency's rate. Plus the asset itself is outside the home bank's jurisdiction. How a villa's currency income and its risks work is covered in currency risk, the dollar, the ruble and a Bali villa, and how property protects against inflation in how to protect capital from inflation.
Bottom line: currency diversification protects against dependence on one economy. Spread savings across currencies and instruments, account for withdrawal restrictions, and remember that currency bought well must be possible to withdraw freely. Income in hard currency from an overseas asset is one of the working forms of such diversification. If you would like to understand how a currency flow from Bali would fit your picture, write to us.
This material is for information only and is not individual investment, tax or financial advice. We are not financial advisers. Verify current restrictions and conditions with your bank and your own adviser.
Sources: AKTIVO, 2026 (currency deposit and bond rates, currency withdrawal restrictions since 09.03.2022), DOMA project canon.
FAQ
What is currency diversification?
It is spreading savings across different currencies so as not to depend on one's rate. If all capital is in one currency, its depreciation hits everything. Several currencies reduce this risk. This is not individual advice, build the plan with your own adviser.
Why hold money in different currencies?
To reduce dependence on one economy. A national currency can depreciate, and then capital in it loses purchasing power on the external market. Hard currency and assets in it protect part of the capital from this risk.
What ways are there to hold currency?
Currency deposits (per open 2026 data about 2–5.5 percent), sovereign replacement bonds (5.5–6.5 percent), corporate bonds, and assets in hard currency abroad, including rental property. Each way has its own yield, liquidity and restrictions.
What restrictions apply to Russian investors?
As of 2026, currency credited to an account or deposit after 9 March 2022 can be withdrawn from a Russian bank only in rubles. For deposits opened earlier, the cash currency withdrawal limit is about $10,000. The restrictions have no defined end, so some investors prefer currency assets outside Russia.
How is property related to currency diversification?
Overseas rental property gives income in hard currency from another country. That is a form of currency diversification: the flow does not depend on the national currency's rate. How a villa's currency income and its risks work is covered in the article on currency risk.
How much capital to hold in hard currency?
There is no single norm, the share depends on where you live, what currency you spend in and your horizon. The key is not to hold everything in one currency. Determine the specific share with your own adviser.