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 Post subject: Quick question on Sterling and Euro
PostPosted: Tue Mar 22, 2016 5:48 pm 
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Migrant

Joined: Mar 22, 2016
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HI I am in a bit of a dilemma and would appreciate your help with a quick question - here goes:

So you have savings of 20,000 euro and 20,000 sterling and you need 5,000 euro soon.
Is it better to dig into the 20k euro or change some of the 20k sterling and use that?


Last edited by cutshort on Tue Mar 22, 2016 8:23 pm, edited 1 time in total.

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 Post subject: Re: Quick question
PostPosted: Tue Mar 22, 2016 6:54 pm 
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Whether you should convert it from GBP to EUR or not is unrelated to the fact that you need to spend some money. Either you like keeping money in GBP (either as currency speculation or because you think you'll need to spend sterling on something soon), or not.

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 Post subject: Re: Quick question
PostPosted: Tue Mar 22, 2016 7:08 pm 
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Property Magnate

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It would also depend of course on what the exchange rate is between Sterling and euro, and where you expect that rate to go in the coming months. Personally, I think the whole Brexit forore will have a negative impact on Sterling whatever way the actual vote goes, but what do I know? Sterling has certainly lost a lot of value since last November, when I was changing up a large sum of money from Sterling to euros. If you do convert your money from Sterling to Euro, make sure you use someone like Smart Currency Exchange to do it, you'll get a MUCH better rate than what you'd get in any high street bank on amounts over about £2,500 and I personally found them excellent (no I'm not on commission from them!).


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 Post subject: Re: Quick question
PostPosted: Tue Mar 22, 2016 7:18 pm 
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Planning Tribunal Attendee

Joined: Jan 2, 2008
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Half and half? Mitigate fx by half


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 Post subject: Re: Quick question
PostPosted: Tue Mar 22, 2016 8:21 pm 
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Migrant

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Mantissa wrote:
Whether you should convert it from GBP to EUR or not is unrelated to the fact that you need to spend some money. Either you like keeping money in GBP (either as currency speculation or because you think you'll need to spend sterling on something soon), or not.

Thanks very much. I like keeping sterling for various reasons - however I don't need to keep that much and am more looking for an answer from a financial perspective.


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 Post subject: Re: Quick question
PostPosted: Tue Mar 22, 2016 8:22 pm 
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pollydolly wrote:
It would also depend of course on what the exchange rate is between Sterling and euro, and where you expect that rate to go in the coming months. Personally, I think the whole Brexit forore will have a negative impact on Sterling whatever way the actual vote goes, but what do I know? Sterling has certainly lost a lot of value since last November, when I was changing up a large sum of money from Sterling to euros. If you do convert your money from Sterling to Euro, make sure you use someone like Smart Currency Exchange to do it, you'll get a MUCH better rate than what you'd get in any high street bank on amounts over about £2,500 and I personally found them excellent (no I'm not on commission from them!).


Thanks for the tip! I think you may be right about the negative impact of Brexit on sterling but like you, I am not sure about these things.


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 Post subject: Re: Quick question
PostPosted: Tue Mar 22, 2016 8:23 pm 
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Migrant

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ixus wrote:
Half and half? Mitigate fx by half


Thanks - sounds like a very practical way to go!


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 Post subject: Re: Quick question on Sterling and Euro
PostPosted: Tue Mar 22, 2016 8:33 pm 
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Too Big to Fail
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Well exchange costs aside I'd spend the £ because if brexit happens then you'll be able to buy more £ when needed with the € you didn't use now. Some forecasts say the £ could lose 20% against the € after brexit and it will probably weaken some more before that anyway.
I may be needing to buy a lot of sterling soon but I'll be holding off until nearer the vote.

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 Post subject: Re: Quick question on Sterling and Euro
PostPosted: Tue Mar 22, 2016 8:46 pm 
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Too Big to Fail

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Match your assets to your liabilities.

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 Post subject: Re: Quick question on Sterling and Euro
PostPosted: Tue Mar 22, 2016 10:40 pm 
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I know of a couple of retailers who are getting crushed by Sterling. They had invested heavily in new premises but are now finding that a lot of their customers are only coming in to size up the product before buying in from the UK.

edit: 10,000 posts! All of a very high standard and mostly polite and non-confrontational.


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 Post subject: Re: Quick question on Sterling and Euro
PostPosted: Tue Mar 22, 2016 11:24 pm 
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Planning Tribunal Attendee

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rubbish :)


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 Post subject: Re: Quick question on Sterling and Euro
PostPosted: Tue Mar 22, 2016 11:41 pm 
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Luan wrote:
rubbish :)
The bit about the retailers? :wink:


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 Post subject: Re: Quick question on Sterling and Euro
PostPosted: Wed Mar 23, 2016 8:07 am 
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I'd hold off on the house purchase. Aren't we waiting for the 2016 crash?

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