The key distinction between dollar deposits held at foreign banks vs domestic banks is that foreign deposits don't benefit from deposit insurance. (hussmanfunds.com)
The risks of investing in emerging markets include the risks of illiquidity, increased price volatility, smaller market capitalizations, less government regulation, less extensive and less frequent accounting, financial and other reporting requirements, risk of loss resulting from problems in share registration and custody, substantial economic and political disruptions and the nationalization of foreign deposits or assets. (nylinvestments.com)
Macao, Hong Kong, and Malaysia, have also seen growth in foreign deposits. (canadianbusiness.com)