# which foreign currency account



## farmerette (19 Jan 2011)

ok , i keep a portion of my savings in hsbc , i opened two accounts in portadown last year , sterling and U.S dollar , i made significant gains by having the bulk of the savings in dollars for the 1st few months but since the euro has rallied against the dollar since before christmas , ive seen the value of my savings fall back ( at the end of the day the euro is my point of reference )  , going forward i dont see either the euro or the american dollar as being particulary stable and so im looking to open another currency account , im in two minds as to whether to go for the swiss franc or the canadian dollar , both are solid stable curencys with the franc baschically bomb proof but im wondering if the canadian is a better pick right now , what with the boom in food commodities and oil of which canada is a large producer of


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## horusd (19 Jan 2011)

Farmerette, any reason why you wouldn't consider AUD $?  I was looking at this recently on AAM ,http://www.askaboutmoney.com/showthread.php?t=149576 but haven't made the plunge yet.  Interested in your rationale tho.  I read somewhere recently that the CHF wasn't particularly "bomb-proof".  I think  I saw this on AAM, but can't now find the thread.


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## Troy McClure (19 Jan 2011)

The AUD$ seems to overly strong at the moment. Some say way too strong and will come back. The deposit interest rates are better.
I was going for can$ account. Investec do them here, however I cant get an answer to the question 'If the Euro goes belly up can the Irish goverment go near a Can$ account that is regulated here, funds held here, with DIRT deducted here??'
Investec say they dont know. I wrote to dept of finance and got no reply.

I am trying to open a non resident account with RBC but it's very slow and still not sure if it's possible.


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## horusd (19 Jan 2011)

Troy not quite sure what you mean by this?

'If the Euro goes belly up can the Irish goverment go near a Can$ account that is regulated here, funds held here, with DIRT deducted here??'

If the account is in a non-euro deposit and the Euro goes belly-up then surely you still have your CAD $'s ? guaranteed by investec or whoever. The only difference will be in the exchange rate to between it and the replacement currency here, like punt nua or a weaker devalued Euro?  But maybe I'm picking you up wrong.


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## farmerette (19 Jan 2011)

horusd said:


> Farmerette, any reason why you wouldn't consider AUD $? I was looking at this recently on AAM ,http://www.askaboutmoney.com/showthread.php?t=149576 but haven't made the plunge yet. Interested in your rationale tho. I read somewhere recently that the CHF wasn't particularly "bomb-proof". I think I saw this on AAM, but can't now find the thread.


 
because the aussie dollar is valued way above its average level right now , its not traditionally all that strong , add to that the recent floods are sure to dent its economy somewhat , its also heavily reliant on china and most so called experts are predicting a slower ( i said slower ) chineese economy this year


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## farmerette (19 Jan 2011)

horusd said:


> Troy not quite sure what you mean by this?
> 
> 'If the Euro goes belly up can the Irish goverment go near a Can$ account that is regulated here, funds held here, with DIRT deducted here??'
> 
> If the account is in a non-euro deposit and the Euro goes belly-up then surely you still have your CAD $'s ? guaranteed by investec or whoever. The only difference will be in the exchange rate to between it and the replacement currency here, like punt nua or a weaker devalued Euro? But maybe I'm picking you up wrong.


 
i suspect what he means is , could the irish goverment freeze any account in investec if they needed the funds bad enough in the event of a collapse  , it would not be possible for them to get thier clutches on the likes of hsbc which opperates outside the state


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## horusd (19 Jan 2011)

Looked at CAD/EU chart compared to AUD/EU chart on xe.com. Similar trends over last few yrs btw. I'll do a bit more research on Canadian economy, might be interesting. 


On the freezing of a/c's that really would be a doomsday scenario alright.  I wonder if that can be done legally or would need legislation.  In fact, I wonder if it would even be constitutional?


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## farmerette (19 Jan 2011)

horusd said:


> Looked at CAD/EU chart compared to AUD/EU chart on xe.com. Similar trends over last few yrs btw. I'll do a bit more research on Canadian economy, might be interesting.
> 
> 
> On the freezing of a/c's that really would be a doomsday scenario alright. I wonder if that can be done legally or would need legislation. In fact, I wonder if it would even be constitutional?


 

let me guess , the aussie dollar compares more favourabley than the canadian this past few years


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## Troy McClure (19 Jan 2011)

You are putting your money in another currency in case of a doomsday scenario!! Surely you would like to know it will be as intended without interference?

I simply asked the question can the government alter accounts under regulation here if they so choose under current Irish legislation. 

Nobody can answer this question with certainty. The bank, the regulator and even the dept of finance cant answer me! Tried them all!
They simply dont know what the government here may be allowed to do.

I would perfer to have my canadian account in canada if possible.


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## horusd (20 Jan 2011)

Have a look at the comparisions Farmerette.  5yr term, you can alter this if you wish.

http://www.xe.com/currencycharts/?from=CAD&to=EUR&view=5Y
http://www.xe.com/currencycharts/?from=AUD&to=EUR&view=5Y

Both AUD & CAD have risen but your right the AUD rise is more dramatic.  Interestingly growth in China, Oz's main market, is forecast at circa 10% this yr. If it's slowing down, it's not anytime soon. Likely China will overtake Japan as 2nd largest economy.  

Troy, I understand your concerns, if  you actually manage to ferret out an answer from someone, I would love if you let us know.  I'm no legal eagle,but surely if money counts as "property" and property is protected constitutionally, then any move to freeze accounts or whatever  might run into serious problems?


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## Chris (20 Jan 2011)

horusd said:


> On the freezing of a/c's that really would be a doomsday scenario alright.  I wonder if that can be done legally or would need legislation.  In fact, I wonder if it would even be constitutional?



Desperate politicians will always do desperate things "for the good of the country". Freezing or confiscating accounts would probably require legislation. But I challenge you to find something in the Irish constitution that would not allow this to happen. The US constitution has much stronger and explicit restrictions on the power of the federal government, but that didn't stop FDR from confiscating gold from the public at $20.67 per ounce and then simply revaluing the dollar to $35 per ounce.


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## horusd (20 Jan 2011)

Chris given what you have said, do you think opening a foreign based account ( either € or other) is a good idea?


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## Chris (21 Jan 2011)

horusd said:


> Chris given what you have said, do you think opening a foreign based account ( either € or other) is a good idea?



I think it is and I have done so. In my case I have very little cash left in Ireland, and that is not in an Irish bank. Ultimately you have to ask yourself whether you are willing to take the risk of not being able to access some or all of your money when you need it.


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## centrewest (21 Jan 2011)

Hi Chris,
Given the problems encountered opening non resident German bank accounts, what are your views on sterling accounts in NI, given sterling is depreciating against the euro, and their own inflation issues, i's appreciate your view,
regards,
CW


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## Chris (21 Jan 2011)

centrewest said:


> Hi Chris,
> Given the problems encountered opening non resident German bank accounts, what are your views on sterling accounts in NI, given sterling is depreciating against the euro, and their own inflation issues, i's appreciate your view,
> regards,
> CW



I think going from Euro to Sterling is like jumping from the fryingpan into the fire. An option would be to open a Euro account, if possible, in the UK, as I believe that in the medium term the UK is a safer place for cash than Ireland is.


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## davep (23 Jan 2011)

Total novice at this but I already have a French bank account as I have a small property there and needed one to pay the local and national taxes. Should I transfer more of my cash to France? Is that a good idea. In a couple of years I hope that we will spend up to 6 months a year there, possibly more.
Thanks
Dave


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## bemmi (26 Jan 2011)

> I think going from Euro to Sterling is like jumping from the fryingpan into the fire.



Chris, Can you elaborate on this please?  Just interested in your opinion.  Thanks!


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