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  • FIRST POST
    • klmeer
    • By klmeer 14th Sep 16, 4:54 AM
    • 9Posts
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    klmeer
    Brexit vote panic with life savings advice needed .
    • #1
    • 14th Sep 16, 4:54 AM
    Brexit vote panic with life savings advice needed . 14th Sep 16 at 4:54 AM
    Not sue if this is the right place to post but anyway ...
    After Brexit vote I panicked and sent all my savings in GBP UK bank to a foreign bank 50K with a 6 % a year fixed .
    Now it seems the pound is recovering and wonder should I send it back to the UK . I really need GBP not USD . I know it was a foolish move and Ive lost 5k pounds already .I have little idea about money markets but should I accept my mistake and hold out for a year hoping the pound will lose value to the dollar or get it back into a UK bank now .?
    Thank you for your advice .
    Its my life savings and my job is low earning so its already a massive blow to me .
    Regards
Page 3
    • Glen Clark
    • By Glen Clark 2nd Oct 16, 8:03 AM
    • 3,455 Posts
    • 2,497 Thanks
    Glen Clark
    I would say risky rather than foolish, apart from that I agree with every word of Ballards post above.
    We would rather say don't worry I am sure you will get your money back (even though we still don't know which bank). But that would make it worse if you don't.
    I would rather be a pessimist, then surprises tend to be nice ones.
    For society to function well, people generally need to feel that they have a fair chance of success through their ability and efforts. The more entrenched hereditary elites we have, the less likely people are to feel that way
    • klmeer
    • By klmeer 18th Oct 16, 7:26 AM
    • 9 Posts
    • 0 Thanks
    klmeer
    Thanks again.
    I should clarify that i transferred when the GBP was low I got about 1.34 then I transferred it back a few days later and I got 1.28 . So they took me for 2500 quid .
    So my question is where will the pound go from now ?
    • Linton
    • By Linton 18th Oct 16, 8:18 AM
    • 6,946 Posts
    • 6,542 Thanks
    Linton
    Thanks again.
    I should clarify that i transferred when the GBP was low I got about 1.34 then I transferred it back a few days later and I got 1.28 . So they took me for 2500 quid .
    So my question is where will the pound go from now ?
    Originally posted by klmeer
    They didn't take you for £2500. Your inexperience led to it being squandered.

    No one knows where it will go in the future. It is at its current price because the number of people who think it will go higher is much the same as the number who think it will fall.

    If I had to guess I would say that it will continue to fall until it is clear what Brexit means and is signed off. At that point it will rise because during periods of uncertainty people are wary about buying and start buying when the future is clearer. After then it will rise inexorably or fall to junk levels, which view you take depends on your attitude to Brexit. However I wouldn't act on my guess.
    • bowlhead99
    • By bowlhead99 18th Oct 16, 10:06 AM
    • 5,129 Posts
    • 9,053 Thanks
    bowlhead99
    After Brexit vote I panicked and sent all my savings in GBP UK bank to a foreign bank 50K with a 6 % a year fixed .
    Now it seems the pound is recovering and wonder should I send it back to the UK . I really need GBP not USD . I know it was a foolish move and Ive lost 5k pounds already
    Originally posted by klmeer
    Thanks
    Yes GBP to USD in a foreign bank 6% fixed for 1 year
    Originally posted by klmeer
    Thanks again.
    I should clarify that i transferred when the GBP was low I got about 1.34 then I transferred it back a few days later and I got 1.28 . So they took me for 2500 quid .
    Originally posted by klmeer
    Seems a bit confusing. You say you bought dollars post referendum and got 1.34. Sterling weakened later and dollars have become worth more pounds in recent months. If you wanted to convert tens of thousands of dollars back to sterling today you would only have to give up $1.22 for every pound, and you would end up with more pounds.

    If you got scared out of holding dollars and "transferred back a few days later and got 1.28", then every $1.34 which you bought for a pound would get you back more than a pound, because you only had to give up $1.28 to get the pound, so you end up *making* £2500 not losing it?

    What am I missing here? If you still have a huge pile of dollars they have been getting more valuable by the day, as well as the 6% interest. That's assuming you are able to make an early withdrawal from the dollar deposit, before the end of the 1 year fixed term you mentioned, and assuming the bank stays solvent and there is no problem getting the funds back out of whatever country you sent it to.
    • Voyager2002
    • By Voyager2002 18th Oct 16, 10:38 AM
    • 11,027 Posts
    • 7,378 Thanks
    Voyager2002
    I wish someone would tell me how to get 6 per cent on my dollars. Without risk, of course.
    • Glen Clark
    • By Glen Clark 18th Oct 16, 10:50 AM
    • 3,455 Posts
    • 2,497 Thanks
    Glen Clark
    So my question is where will the pound go from now ?
    Originally posted by klmeer
    Depends on the trade deals Britain gets. Looking at Boris Johnson's latest idea to bring back the Royal Yacht and go for a cruise (so they can all work hard on Britain's trade deals obviously ) http://www.telegraph.co.uk/news/2016/09/19/theresa-may-opens-door-to-recommissioning-of-royal-yacht-britann/ I despair.
    And yet, in my dreams, there will be another referendum on the bum deal Boris is offered, Britain will vote to stay in, and the pound will recover
    For society to function well, people generally need to feel that they have a fair chance of success through their ability and efforts. The more entrenched hereditary elites we have, the less likely people are to feel that way
    • Voyager2002
    • By Voyager2002 18th Oct 16, 11:20 AM
    • 11,027 Posts
    • 7,378 Thanks
    Voyager2002
    The strength of the US$ would be the least of my concerns.
    Its the strength of the bank which matters, and nobody can advise you of that when you won't tell them which bank it is..
    Originally posted by Glen Clark
    This is still the big question...

    We can be reasonably confident that the pound-dollar rate will not vary by an outrageous amount, so if I were invested in dollars with a good rate of return I would not really worry about the exchange rate. Key questions would be about the security of the bank holding the investment; about whether the government might prevent me from moving the funds out of the country at some point in the future (think Cyprus); and whether the investment would continue to be "real" US dollars. (For the last question I am thinking of Sierra Leone, which officially uses the US dollar as its currency but now produces its own notes and coins denominated in dollars, and of course you cannot exchange them nor use them anywhere else in the world.)
    • coyrls
    • By coyrls 18th Oct 16, 12:04 PM
    • 592 Posts
    • 545 Thanks
    coyrls

    We can be reasonably confident that the pound-dollar rate will not vary by an outrageous amount
    Originally posted by Voyager2002
    On what basis can you say that? 6% is nothing compared to the recent changes in the pound-dollar rate.
    • bowlhead99
    • By bowlhead99 18th Oct 16, 12:23 PM
    • 5,129 Posts
    • 9,053 Thanks
    bowlhead99
    On what basis can you say that? 6% is nothing compared to the recent changes in the pound-dollar rate.
    Originally posted by coyrls
    Right, but it is not an "outrageous amount" like the hundred percent or so that you could lose due to the range of risk factors that cause the institution concerned to have to offer 6% instead of 0.5% for a cash deposit because of their perceived dodginess or their country's instability, which is what the poster is alluding to.

    Those are the factors more worthy of your concern when considering getting 6% on dollars sat in a foreign bank, not the fact that you might lose 20% on the fx side. Presumably your view of the fx side is the whole reason you'd be seeking a dollar deposit anyway.

    If Putin decides he is annexing the part of the country that the bank is sitting in, nationalising the banks and applying a 98% confiscation factor on foreign deposits made by infidels who might be loyal to the previous regime, the USD/GBP fluctuations are neither here nor there. The bank isn't offering 6% on dollars because dollars are riskier than sterling, but because the bank's own situation is riskier than all credible developed-world banks.
    • eDicky
    • By eDicky 18th Oct 16, 3:13 PM
    • 1,745 Posts
    • 738 Thanks
    eDicky
    I should clarify that i transferred when the GBP was low I got about 1.34 then I transferred it back a few days later and I got 1.28 . So they took me for 2500 quid .
    Originally posted by klmeer
    If you bought USD with your GBP at a rate of 1.34, then later used those dollars to buy pounds at 1.28, surely you made a profit..? Try clarifying again...
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