Brexit and the value of the pound

TyreLever

If the value of the pound falls really badly, would there be any advantage in getting my employer to pay me in euros or some other, more stable currency? Hypothetically.

EDIT: Probably not the best forum to post this question. How do I delete it?

worried_jim

That would mean your employer giving you a pay rise to do so- are they likely to do this? And if they were they may as well just pay you in Sterling.

TyreLever

Hard to imagine how pay rates would work with regards to a weak currency vs a strong one. I work for an international company so I wouldnt think it be much different paying a living wage for someone in Spain vs someone living in the UK, using euros for both.

worried_jim

Well why didn't you put this in your original post. I looked at your user name and thought you worked in kwik fitt!

lincroft1710

Currencies fluctuate so there is a possibility than once the company had agreed to pay you x euros per month agreed on the exchange rate prevailing (for example) on 1 August 2017, the value of the £ may rise leaving you slightly worse off

Malthusian

If the value of the pound falls again (say to 1 pound = 1 Euro), getting your employer to pay you in Euros afterwards will make no difference, as (assuming they are happy with it and there is no cost to them) they will simply offer you to pay you a salary of 50k euros instead of 50k pounds.

To gain any benefit you need to get them to pay you in euros before the fall, at the current rate, so before the fall you're paid 55,500 euros = 50k pounds and then after the fall you're paid 55,500 euros = 55,500 pounds.

This would however be a brave move - assuming most of your expenditure is in Sterling - because sterling is currently at a historically low rate. Brexit is a red herring; Sterling fell to near 1:1 against the Euro in 2010 without Brexit, and it is perfectly possible that Sterling may rise despite Brexit. Currency markets are random. If most of your expenditure is in Sterling then you would be putting your entire monthly pay packet on a currency bet.

If on the other hand your job allows you to stay in Spain for extended periods so you have the option to make most of your purchases in Euros, it becomes a very different equation.