Should £ stay or should it go?

Whether you're a working stiff or a business owner yourself, this is the place to discuss all aspects of financing your drinking habit ;-)

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Ramoaner
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Should £ stay or should it go?

Post by Ramoaner »

Good evening all,

My family and I are relocating to the Kingdom in the not too distant future having spent 3 years back in the UK and would like some sensible opinions on a financial matter.

With the pound now at an all my lifetime low, I am not sure that transferring all my liquid would be the correct decision at the moment because of the low rate.

I am lucky to have an option of leaving some money in the UK and hoping that in a few years time the rate will get better but I was wondering what your thoughts on

this would be.

I know there is no crystal ball out there but do you think the option of microfinance would outweigh leaving the money in the YUK?

Thanks for your time and appreciate any input.

Stewwy
WillieW
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Re: Should £ stay or should it go?

Post by WillieW »

Nobody knows...but I would not be too optimistic about the UK getting out of the financial hole anytime soon. When this Brexit shit starts to really kick in combined with the total bampots leading the country just now its only going to get a lot worse imho.
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AndyKK
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Re: Should £ stay or should it go?

Post by AndyKK »

I did what you are talking about, leaving some money in my UK bank. I have the usual, current and savings accounts. To transfer money from the bank to Cambodia I have to use the current account. And it was recently the bank put a monthly £3 charge on the account. I also had a ISA, but it's worth very little with interest rates being so low. Would be better if I had transferred the money to a microfinance here, but I do worry if something goes wrong, I can't afford to lose monies.
Also does anyone know what the situation is with tax returns?
Always "hope" but never "expect".
Tootsfriend
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Re: Should £ stay or should it go?

Post by Tootsfriend »

Ramoaner wrote: Sat Sep 24, 2022 12:48 am Good evening all,

My family and I are relocating to the Kingdom in the not too distant future having spent 3 years back in the UK and would like some sensible opinions on a financial matter.

With the pound now at an all my lifetime low, I am not sure that transferring all my liquid would be the correct decision at the moment because of the low rate.

I am lucky to have an option of leaving some money in the UK and hoping that in a few years time the rate will get better but I was wondering what your thoughts on

this would be.

I know there is no crystal ball out there but do you think the option of microfinance would outweigh leaving the money in the YUK?

Thanks for your time and appreciate any input.

Stewwy
You are in the same situation as Australians. The currency exchange rate is at a all time low but only because the USA $ is so strong. A war is always what is needed to boost the American economy and make a strong dollar so you are going to have to wait , like me, until after the Ukrain war until they realise just how much money they have spent and have to account for ,, plus interest.
Jack.R.
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Re: Should £ stay or should it go?

Post by Jack.R. »

Finding somewhere to park your money into for the time being in £ at the best interest rate available and only exchange the minimum necessary makes sense.

However I reckon the £ will still lose further value in the period between today and mid 2023 so exchanging, as painful as it is, might have some merit as well.

Ultimately it depends, above all, to the federal reserve interest rate vs the bank of England interest rates.

As long as the US remains clearly ahead and on a rate raising path, unless the bank of England interest rates manage to catch up, money will flow from the pound to the dollar. As after all why would you keep your money in deposits and bonds of a currency that provides much lower returns when the US is considered the safest option in term of government bonds if it also pays more?
So people and institutions have now been moving money into USD from everything that pays less and triggered this current "super dollar".

It's a tough decision as you are rather late for exchanging yet perhaps not too late to still gain some advantage from the current situation if you exchange now.

Assuming that in the UK you could get 3% in Pounds and here 7.5% in dollars you should research for a few forecasts and see if the price of the Pound+3% (in dollar value) 12 months from now is forecasted to be higher or lower than the current exchange rate +7.5%.
This should be the correct course of action.
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Kammekor
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Re: Should £ stay or should it go?

Post by Kammekor »

Ramoaner wrote: Sat Sep 24, 2022 12:48 am Good evening all,

My family and I are relocating to the Kingdom in the not too distant future having spent 3 years back in the UK and would like some sensible opinions on a financial matter.

With the pound now at an all my lifetime low, I am not sure that transferring all my liquid would be the correct decision at the moment because of the low rate.

I am lucky to have an option of leaving some money in the UK and hoping that in a few years time the rate will get better but I was wondering what your thoughts on

this would be.

I know there is no crystal ball out there but do you think the option of microfinance would outweigh leaving the money in the YUK?

Thanks for your time and appreciate any input.

Stewwy
Leave some. Don't burn your bridges and having access to money in a UK account might come in handy in the future.

<edit>
Imagine the horror of opening one, if you wanted to, in your position.
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truffledog
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Re: Should £ stay or should it go?

Post by truffledog »

GBP/USD over the last 5 years

Image

gone are the times where the GBP was a strong currency...and the dollar surely wasn't a strongy currency over the last 5 years. With the FED massively raising interest rates I fear that the pound will even get weaker.

But as always with such predictions. I could be completely wrong.
ALWAYS HUNGRY
WillieW
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Re: Should £ stay or should it go?

Post by WillieW »

Would now be the time for a UK citizen with all his money in Cambodia to send it back to the UK ? Assuming that he would be living in the UK in 10 or 20 years that is?
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hburns
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Re: Should £ stay or should it go?

Post by hburns »

My hope is that the mess caused by brexit will get sorted out and that will boost the £ massively. A lot of the damage to the £ has been caused by brexit so hopefully that damage can be reversed once sensible heads take control and sort things out. The next general election is in 2024 so it will probably be a bumpy ride until then.
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Alex
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Re: Should £ stay or should it go?

Post by Alex »

I'm not an economist and I don't really have any skin in the game (never invested on that funny little island), but I did take note of Larry Summers calling out the UK as a potential "submerging economy" - basically on a path to become the opposite of a developing country.

I can see that, with the unresolved Brexit fallout, the clownery perpetrated by Boris and now with that Truss abomination in charge. Her cabinet doesn't look a whole lot better either. In many cases, and I'll leave it there, even worse.

https://www.bloomberg.com/news/articles ... k-policies
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