I would like to have some moderate proportion of my savings outside of euros.

Does anybody have any opinions on this line of reasoning?

Money fled to swiss frank as a perceived safe haven over the last few years. Swiss frank rose against euro and swiss central bank stepped in to so far successfully to force a ceiling of 1.20 CHF to the euro.

Now in the (unknown likelihood) event that the eurozone does break up at least partially and Ireland ends up back with its own random depreciating currency or in a much weakened euro because of a german exit, CHF is likely to be seen as a safe heaven again.

To my mind that would likely mean the end of the CHF ceiling of 1.20 CHF to the euro as the potential losses to the swiss central bank would be enormous to try and enforce that.
At the least I can't see how in the face of that they could lower the ceiling below 1.20 CHF to the euro, though doubtlessly the swiss central bank does want CHF at less than the current 1.20 ceiling.

The risk of transferring euros to CHF IMO is that the euro muddles through, everything returns to normality and the CHF slides back down to something more like 1:1. That could cost me a fair proportion of the transferred money but I don't see how it's that likely and perhaps some minor losses would be a reasonable price to pay for the reassurance of having some of the money outside of euro.

So, for someone who wants to move some of their euros to a different currency as a hedge against potential euro difficulties, I think CHF currently looks like a reasonable gamble (and I can't argue it's not a gamble).
I don't trust dollars or sterling not to have their own fits in the near future. NOK is very high and perhaps they will follow the swiss lead and impose a similar ceiling.

What do you think?

Anything that I'm missing in this reasoning?

The risk of transferring euros to CHF IMO is that the euro muddles through, everything returns to normality and the CHF slides back down to something more like 1:1. That could cost me a fair proportion of the transferred money but I don't see how it's that likely and perhaps some minor losses would be a reasonable price to pay for the reassurance of having some of the money outside of euro.

Anything that I'm missing in this reasoning?

To my mind that would likely mean the end of the CHF ceiling of 1.20 CHF to the euro as the potential losses to the swiss central bank would be enormous to try and enforce that.

As the currency declines, export-focused Germany becomes super-competitive. But devaluation is what the struggling eurozone economies yearn for too

Paradoxically, however, as the US economist Martin Feldstein recently suggested in the Financial Times, the weakness of the euro, while reflecting the loss of faith of the financial markets in the sustainability of the euro area, may simultaneously offer a lifeline to the single currency. For it is by now, one trusts, widely recognised that the economies under pressure – Greece, Spain, even Italy – have suffered a huge loss of competitiveness vis-a-vis Germany, and have, of course, been unable to devalue against a no-longer-existent deutschmark.

As Feldstein implies, though, the loss of confidence in the euro, and its accompanying decline, bring one consolation to the entire eurozone. Germany becomes even more "super-competitive" with that decline, and benefits most; but the rest become more competitive vis-à-vis non-eurozone countries.

Take it for what its worth..few general rules

1) dont have all your eggs in one basket..
2) diversify if you can afford it i.e GBP, Euro,Chf Usd and Cash..
3) Currency controls is a guarantee if/when this goes down

i dont know if buying all the cars in your local FIAT dealer counts as diversification. Theres only 1 way to be sure:)

http://www.youtube.com/watch?v=wV0wPBYDQ6Y

touché

http://www.youtube.com/watch?v=sQh5Cx-EuV8

Great Rate

3.10% Variable. Gross/AER* on your first €20,000, and 2.40% Variable. Gross/AER* on anything above that. This rate applies to both new and existing customers. We believe that's fair.

You should know that from September 5th 2012, a variable rate of 2.75% Gross/AER* will apply on the first €20,000 deposited and a variable rate of 2.15% Gross/AER* will apply to the remaining deposit above €20,000.

Then, from September 12th we will introduce an additional tier of 0.50% Gross/AER* for balances above €10 million.

There's a significant cooling off of deposit rates in Irish banks. KBC and Rabo will be able to reduce their rates and still keep them vastly superior to the competition.

Yeah, in recent weeks, there has been a coordinated cull in deposit rates at the 3 pillar banks.

KBC can cut term deposit rates and still stay competitive.

Rabo has extremely un-competitive term deposit rates & instant access rates. They compete by using the safety card.

How come the rates are dropping? BOI gave 4.5% at the start of the year on a significant wedge, 3% at mid year, and they say it's going to drop to one-point-something next year. And that's even after they stop paying a 1.5% levy to the government for the ELG. I know the higher rates are unsustainable, but it's not like Irish banks have suddenly become any safer. At less than a couple of percent they are probably less attractive than earning zero outside the country for safekeeping.

The sky hasn't fallen in (yet). So, probably many retail customers are thinking that the worst is over, and if the pillar banks are still standing today, it will remain that way. Which brings us to one of the main reasons people don't change bank account - inertia.

As for putting money outside the country, that's not so easy for the average retail bank customer. This thread has been running for years and to tonnes of pages, yet I have not yet seen even a rough consensus on how to easily move your wedge out of this jurisdiction and still earn a guaranteed 0%.

There are some options for German speakers with the German Banks. They involve at least the investment of a day off work and a return flight to the Fatherland. And now the German government is removing the ability for retail customers to purchase bonds directly. There may be similar possibilities in France or the Netherlands for speakers of those languages. Anything in a foreign currency carries exchange rate risk, so you can't even claim to be earning 0%.

So, for many people who've opened an account with, say, BOI in the last year or so. They'll likely just stick with it even with declining interest rates.

How come the rates are dropping? BOI gave 4.5% at the start of the year on a significant wedge, 3% at mid year, and they say it's going to drop to one-point-something next year. And that's even after they stop paying a 1.5% levy to the government for the ELG. I know the higher rates are unsustainable, but it's not like Irish banks have suddenly become any safer. At less than a couple of percent they are probably less attractive than earning zero outside the country for safekeeping.

Good points, and I guess I am evidence of the inertia factor myself, being constantly on the cusp of moving cash out of BOI and not being able to think of a sensible alternative. However, I do have a Rabo account, and below a certain rate in BOI that's where the money will go, for perceived greater safety reasons. Also, if one is sticking with the euro currency for the medium term, one might as well consider the various Irish state savings schemes, which still -- grossed up for non-DIRTness -- pay the equivalent of four or five percent. (Can anyone tell me how often these schemes are renewed and subject to new rates?).