The U.S. Dollar Strengthens During The COVID-19 Outbreak

Over the last 30 days, US equities markets have seen a sell off of historic proportions. However, as worldwide markets continue to react and adjust to changing investment dynamics during the current Coronavirus pandemic, a curious trend has emerged. Although the S&P 500 Index has lost over 20% of its market capitalization in less than 6 months and the Dow Jones Industrial Average has lost almost 35% of its value in exactly one month, the U.S. dollar has significantly strengthened.

The strengthening of the USD despite a globally upsetting crisis further reinforces the case for foreign investors to invest in the United States using the EB-5 program as a means of asset protection. It is advantageous for foreign investors to capitalize on this opportunity and invest in one of the most secure government programs available: the EB-5 visa program. In addition to placing their investment funds in a project, investors will also (upon approval) receive a green card and the ability to become citizens of the United states, along with their spouses and any children under 21.

The strength of the USD compared to other key countries’ currencies

This chart compares the strength of the USD as compared to several key currencies from countries whose citizens (and former citizens) represent many of the market share in the EB-5 visa program:

CurrencySymbolFeb-23Mar-23% Change
U.S. DollarUSD1.001.000.00%
South African RandZAR15.0817.81-15.33%
Indian RupeeINR71.8976.53-6.06%
EuroEUR0.920.93-1.08%
British PoundGBP0.770.87-11.49%
Brazilian RealBRR4.395.12-14.26%

 

The impact of these devaluations is hard-hitting on many investors who are concerned for the security of their finances.

Has The EB-5 Minimum Investment Amount Changed?

While the required minimum investment amount has not changed for the EB-5 program in the last 30 days, the amount of investment required to transfer into U.S. dollars (if a family still holds their investment amount in their home currency) has increased, and quite substantially in some cases:

CurrencySymbolFeb-23Mar-23% Change
U.S. DollarUSD900,000900,0000.00%
South African RandZAR13,572,000.0016,029,000.00Increased: 18.10%
Indian RupeeINR64,701,000.0068,877,000.00Increased: 6.45%
EuroEUR828,000.00837,000.00Increased: 1.09%
British PoundGBP693,000.00783,000.00Increased: 12.99%
Brazilian RealBRR3,951,000.004,608,000.00Increased: 16.63%

 

Although every investor or investor family has their own motivations for moving to the United States, the EB-5 program has been an incredibly popular program over the last 10 years because it allows every investor to customize a life and future in America that fits their needs and dreams for their family. Now, due to the unfolding global crisis surrounding COVID-19, the economic impact of this investment has never been more evident.

3 Key Benefits Of The EB-5 Visa Program

  • EB-5 Investors receive an expedited green card that allows them and their dependent children under the age of 21 to immigrate to America with very few limitations or obligations.
  • The U.S. government is protective of EB-5 investors and their funds, as the U.S. economy receives a boost in foreign direct investment which will be translated into employment for newly created or saved jobs.
  • Developers receive discounted capital to deploy in their projects, incentivizing their creation of EB-5 funded projects.

Investment Security vs. ROI

One of the main concerns that foreign investors may have about the EB-5 program is that EB-5 investors do not receive sizable returns on their funds, with market rates of return typically averaging between 0.5% and 2.0%. However, given the savings presented in simply utilizing an investment vehicle that must be recognized in U.S. dollars at a time when worldwide markets and currencies are experiencing unprecedented volatility, a modest return in an incredibly safe currency has never been more attractive.

As always, not only are you welcome to contact me directly, but I would encourage you to reach out to me via my personal mobile number at +1(813)786-5381, so that I can hear your thoughts and we can discuss this incredible investment opportunity. I can also be contacted via WhatsApp or email at kirkeicholtz@christiantylerproperties.com.

Wishing you and your loved ones health and safety.

Sincerely,

Kirk Eicholtz