How to Go Beyond the US Dollar and Build a Resilient Portfolio

Think the US Dollar is the ultimate safe bet? Yes and No.

In today’s interconnected economy, relying on one currency can feel like dining at the same Michelin-star restaurant every night; luxurious, but you’re missing out on the world’s finest cuisines. True wealth is about freedom, flexibility and foresight.

This article reveals why currency diversification is your passport to global opportunities and how to craft a portfolio that travels as far as your dreams.

After building a strong foundation, it’s time to think bigger. Moving beyond the US Dollar isn’t just about reducing risks; it’s about embracing global opportunities, enhancing portfolio resilience, and aligning investments with lifestyle ambitions like funding your child’s education in London or owning a pied-à-terre in Paris.

Currency diversification means holding assets or cash in a mix of currencies rather than relying on one. It complements asset diversification across equities, fixed income, and alternatives.

Ready to start? Here’s how to make it happen:

1. Start mapping your global footprint: Where do you live, invest, and dream?

2. Set target ranges: Align currencies with ambitions e.g., MYR for local expenses, AUD for Australia vineyard, GBP for that London townhouse.

3. Use currency-hedged instruments selectively: Keep returns steady while focusing on fundamentals.

4. Maintain liquidity in multi-currency accounts: Keep euros, pounds, or yen. Ready for tuition, travel or luxury purchases.

5. Adjust gradually: Build your global portfolio step by step, like curating a fine art collection.

Diversification can also go beyond currencies to include instruments and assets that strengthen resilience. Here’s how each option works and why it matters for your lifestyle:

Combining these strategies creates a globally diversified portfolio that balances growth, flexibility, and resilience.

Source: CIMB 1H2026 Balanced Model Portfolio

1. Over-concentration in a single currency.

2. Ignoring costs, fees, and tax implications.

3. Making large changes too quickly. Start by diversifying in stages. 

• Preserve Capital: Reduce concentration risk through portfolio and currency diversification

• Capture Global Growth: Position for opportunities in Asia, Europe, and beyond.

• Enhance Flexibility: Multi-currency holdings support international living and investments.

Imagine a portfolio that moves as freely as you do, across borders, across opportunities, across generations. The world is bigger than the US Dollar. By diversifying across currencies and markets, you’re not just chasing returns, you’re building a legacy of resilience.

In an era of uncertainty, that’s the hallmark of true financial sophistication.

Listen to CIMB CIO Podcast: Beyond the US Dollar : Opportunities to Diversify for expert insights on currency strategies and global diversification.

This article is for informational purposes only and CIMB does not make any representation and warranty as to the accuracy, completeness and fairness of any information contained in this article. As this article is general in nature, it is not intended to address the circumstances of any particular individual or entity. You are advised to consult a financial advisor or investment professional before making any decisions based on the information contained in this article. CIMB assumes no liability for any consequences arising from your reliance on the information presented here.