The New Year's Day launch of a single currency for 11 European Union nations signals the advent of a new investment medium, and one which could carry a lower risk than the other major currencies. Financial institutions around the globe have given the currency a vote of confidence - indeed, it is widely believed the euro could soon become one of the strongest currencies in the world, possibly even taking over from the mighty US dollar. You can open a foreign currency deposit account with your local bank and save your money in euros. All the big banks offer a local foreign currency account where you deposit rands which are then converted to the currency of your choice.
Euros are now available.
The aim of keeping your money in a foreign currency is to protect your savings against a depreciating and volatile rand. This is the one-off allowance granted by the Reserve Bank to individual taxpayers who have a clean tax record. Your bank may give you the option of converting your euros to, say, the German mark, or any other currency of the 11 participating nations. This option could continue for several years, and most probably will be withdrawn in 2002, when euro notes and coins go into circulation. If you already hold one of the 11 national currencies in a foreign currency bank account, the banks say your money will be switched to the euro denomination only when you request it.