Should I change my Euros to Pounds now?!

MoHen

HiI'd like peoples advice and opinions please.
I have 20,000 Euros abroad (non euro zone country-Croatia) which I'm thinking about changing to Pounds as I'm worried that the Euro will crash.
In 6 weeks time the Euros earn £700 in interest but I'm worried that in 6 weeks they will be so weak compared to the Pound that it will be a lot more than £700 I lose out on.
Change now and get around £17000 for the Euros or wait and see? What would you do?
Thanks!

Late_To_Bed

Why do you think the Euro is going to be so weak?

Sterling is going to have rise nearly 5% in value for you to be correct to change them before you earn the interest.

I would definitely wait.

Reaper

Are you sure you have to wait? On a variable rate UK savings account you do not have to wait for the annual interest date as interest is calculated daily so you would get almost all of it when you close the account. That only does not not apply if it is a fixed term account in which case there will be some kind of penalty clause.

Glen_Clark

Agree with Late To Bed. Sterling is being strengthened temporarily by foreign investors buying up British Assets like Utility Company Shares and Knightsbridge properties. This boost to the pound cannot last because we can only sell these assets once. And the bankers are keen to crank the printing presses up again. Bonuses all round chaps.

IronWolf

There's a rumour that the Euro could be pegged to the US$ in the future, 1 for 1. If it happens you're better off cashing into £ sooner rather than later.

alanq

The Eurozone's current problems are due to the different European countries having different growth rates and not being to choose an exchange rate appropriate to their needs. What would be the sense of linking the currency to yet another country's requirements?

Glen_Clark

alanq wrote: »

What would be the sense of linking the currency to yet another country's requirements?

Makes it possible for manufacturers and exporters to plan investment knowing they won't be driven out of business by exchange rate fluctuations. Linking to a more reliable trading partner like the US dollar would be a better proposition than linking to unreliable countries like Greece.

srcandas

Glen_Clark wrote: »

Linking to a more reliable trading partner like the US dollar would be a better proposition than linking to unreliable countries like Greece.

Glen not for everyone which is the very point. How would the PIIGS benefit from this? Not only their currency over valued but now having to appeal to the US for help :wall:times two.

Equally I cannot for one minute see the Germans agreeing to this? It sounds like theoretical economist talk to fill a few column inches .

Now if you said the new German mark tied to the dollar - that would be different

srcandas

or were you thinking of a Euro without the PIIGS?

jimjames

srcandas wrote: »

or were you thinking of a Euro without the PIIGS?

Interesting interview on Radio 4 this morning with a comment from German politician close to Merkel which unfortunately wasn't picked up by the interviewer.

Their line was that Greece is uncompetitive and either has to cut wages/costs by 40% or devalue and seemed to be that devaluation looked the easier option. If this is the opinion now being considered in Germany then I think Greek exit will happen sooner rather than later.

srcandas

jimjames wrote: »

If this is the opinion now being considered in Germany then I think Greek exit will happen sooner rather than later.

With you there Jim. It seems although the thing has a momentum and without a Greek government in place there is no one to apply the brakes.

And if they go for an election, which seems likely, then we are weeks away from a result and that looks like leading to more anti austerity gains.

But will the Germans try and protect the others or will there be a case for letting Spain and Portugal go? Sort of take the hit and get it out of the way leaving a much stronger Euroland?

One good thing today for the UK was news that in March non Euro exports rose strongly (+12%) while to the Euro were flat. Looks like we are positioning better to protect ourselves from Euro fallout