Thinking of a way to earn interest on JPY via Travelog
Many people have likely exchanged their money into JPY using the Hana Money Travelog card during the recent period of the weak Yen.
Everything is great, but the holding limit is stuck at 3 million KRW, and it's a bit disappointing that the interest rate is 0% if you just leave it in your account.
I want to share a method to completely bypass this limit, protect the value of your Yen, and consistently earn high US interest rates of around 4-5% per annum in JPY.
[Practical Mechanism]
1. Top up your JPY in the Hana Money app.
2. Open the Hana Securities app and change your overseas stock currency setting to [JPY (Japanese Yen)].
3. Purchase the [iShares US Treasury 1-3 Year JPY Hedged ETF (Ticker: 2620)] listed on the Tokyo Stock Exchange.
[Why do it this way?]
• Unlimited Limit Bypass: The moment you buy the stock, the money moves from your 'card wallet (3 million KRW limit)' to a 'securities company foreign currency vault with no limit,' meaning you can theoretically top up and accumulate unlimited JPY.
• Ironclad Currency Hedge: The currency hedge structure of 2620 perfectly defends against potential foreign exchange losses on dollar assets that could occur when the Yen rises (strong Yen) in the long term. It is a structure where you protect your principal (JPY) while only harvesting the US Treasury interest.
• FIRE Movement Cash Cow: When traveling in Japan after retirement, it is perfect for using only the JPY distributions that come out every three months (January, April, July, October) as local expenses without touching the principal.
If you leave it alone, it's "dumb money," but if you use this build, I believe it becomes "smart money" that earns interest on its own.
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