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A multicurrency account, sometimes called a foreign currency account, allows consumers and businesses to hold different currencies in one bank account. They can also send, receive and withdraw money from the account, as with a standard bank account but in multiple currencies.

One can classify currencies into three monetary systems: fiat money, commodity money, and representative money, depending on what guarantees a currency's value (the economy at large vs. the government's physical metal reserves).

Many but not all banks offer multicurrency accounts. Some of the U.S. banks that offer foreign currency accounts at press time include Citi, HSBC, and TIAA Bank. For businesses, Wells Fargo and PNC offer foreign currency accounts. You can contact your current bank to find out if multicurrency accounts are available.

Multicurrency accounts are demand deposit accounts (DDAs) that are domiciled in the United States and hold foreign currency instead of U.S. dollars so your business can make and receive payments in 30 major and emerging market currencies without the need to open accounts with foreign banks.

Do banks accept foreign currency in the US? Some banks may let you exchange unspent foreign currency you bring back to the U.S., but you generally won't be able to deposit foreign money into your checking or savings account. Instead, you'll have to exchange foreign currency for dollars before making a deposit.

There are three main types of foreign exchange risk, also known as foreign exchange exposure: transaction risk, translation risk, and economic risk. A fourth ? jurisdiction risk ? arises when laws unexpectedly change in the country where the exporter is doing business.

Central banks manage currency by issuing new currency, setting interest rates, and managing foreign currency reserves. Monetary authorities also manage currencies on the open market to weaken or strengthen the exchange rate if the market price rises or falls too rapidly.