[GNC] Do I need to set up multiple bank accounts for different currencies?

[David Cousens]

Dave

This is the crucial step

>"It's the one bank account - I don't have different account numbers for
> different currencies, and can't hold balances in anything other than GBP."

In this case there generally is no need to have an account in another currency.
If you can record all you need by adding a note that the orignal
deposit/withdrawal was so much of another currency at the exchange rate valid at
the time.
 
When I was last travelling on holidays I had a debit card whose balance was
recorded in another currency (SGD) and transactions recorded with it were made
in that currency so it made sense to set up accounts in that currency and record
the transfers from my bank account to itand back when I returned.

When I was working my business credit card was in AUD but I could use it in most
countries around the world and did. The bank did the conversions, added fees etc
so I had no need to maintain accounts for transactions in other currencies I
just recorded my expenses in AUD, usually with a note about the cost in the
original currency (mainly because some were refundable by my employer and I had
to provide receipts and match them to the AUD amounts i was claiming).

When setting up an account structure, I always ask myself what information is it
recording and for what purpose and in what form do I need that information. That
usually sorts out whether I need a specific account or not.

David Cousens

On Thu, 2022-12-22 at 15:56 +0000, Dr. David Kirkby wrote:
> My Bank is a UK bank, but I sometimes buy things in $HKD, and fairly
> regularly receive payments in USD and EUR in addition to the obvious GBP.
> Should I set up accounts like this? (American's call them checking
> accounts, but we don't here).
> 
> Assets: Current Assets: Bank Account (GBP)
> Assets: Current Assets: Bank Account (USD)
> Assets: Current Assets: Bank Account (EUR)
> Assets: Current Assets: Bank Account (HKD)
> 
> It's the one bank account - I don't have different account numbers for
> different currencies, and can't hold balances in anything other than GBP.
> 
> I initially assumed I needed 4 accounts for 4 currencies, but now I'm
> wondering if I can avoid that complexity, given I can only have a balance
> in GBP.
> 
> Dave
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