Before getting all excited about that 5% yield, remember, anyone investing in billions of $ (like Central Banks) want absolute certainty that their PRINCIPAL is safe and secure! That Emigrant Direct savings account is only insured up to $100,000 by FDIC. Anything beyond that can just “emigrate away” if the bank goes belly up!
And you need a really big mattress to put a billion $ in Ben Franklins under it.
So it boils down to currency risk diversification, preservation of principal and practicality.
