# If the euro goes down because of devaluation will irish deposits in Rabo be devalued?



## Modestus2416

If the euro goes down and there is a devaluation will irish deposits in Rabo be devalued as I am an Irish resident and not a Dutch National-similarly will euro deposits in National Irish Bank be davalued even though its a Danish Bank with Danish Kroner Guarantee 
If I open a German euro account with German address am I protected more from devaluation because it is German Euro sccount


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## pudds

Maybe I'm looking at this too simply... but if the euro is devalued..surely all euro held accounts will have to follow that devaluation regardless of what country their held in.


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## Modestus2416

*Deposits*

Should I now convert euro deposits into Norweigan Kroner or Canadian Dollars to avoid devaluation -I assume the conversion cost will in the long run be cheaper than just leaving the euro to be devalued


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## farmerette

Modestus2416 said:


> Should I now convert euro deposits into Norweigan Kroner or Canadian Dollars to avoid devaluation -I assume the conversion cost will in the long run be cheaper than just leaving the euro to be devalued


 
having savings in a rabbo direct account will not shield you from a devaluation were ireland to choose ( or be forced ) to leave the euro , same thing if you have your savings with nationwide uk or ulster bank


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## Troy McClure

If these banks are operating accounts in Ireland you may be protected by the government guarantee of thir Mother country but they are punts in the event of a Euro breakup.
Pudds the issue is Irelands 'new' currency would have to devalue over night due to our financial position. This includes Euro to punt deposits. Most other Eu countries are not in this position so they would not need to devalue.


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## Troy McClure

Rabo rep confirmed with me funds deposited with them here would revert to Irish currency in the event of Euro breakup.


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## ajapale

What happened in Argentina with dollar denominated accounts?

Corralito - Wikipedia




			
				wiki said:
			
		

> _*Corralito*_ (Spanish pronunciation: [koraˈlito]) was the informal name for the economic measures taken in Argentina at the end of 2001 by Minister of Economy Domingo Cavallo in order to stop a bank run, and which were fully in force for one year. The _corralito_ almost completely froze bank accounts and forbade withdrawals from U.S. dollar-denominated accounts.
> The Spanish word _corralito_ is the diminutive form of _corral_,  which means "corral, animal pen, enclosure"; the diminutive is used in  the sense of "small enclosure" and also "a child's playpen". This  expressive name alludes to the restrictions imposed by the measure.


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## Duke of Marmalade

[broken link removed] won't happen. But let's hypothecate. We are talking about a situation where the government announces at 12 midnight on a Bank holiday weekend that all Irish deposits and liabilities and contracts and pay arrangements and prices in shops etc. etc. currently denominated in euros should be interpreted as being in punts nua at a 1 for 1 translation but henceforth a punt nua will be worth 50c. So the question is would such a decree apply to Rabo/Ulster etc.? Why should the government extend it to these foreign banks? That is only harming its own citizens who are owed euros by these banks. But it is true that these deposits are subject to Irish law so if it was a blanket decree they would be caught.

Anyway this is all very silly, it is never going to happen. Not only is it hopelessly impractical (see above link), it doesn't actually help as it suddenly doubles all our foreign debt in relation to our economy, as we can't extend the decree to foreign jurisdictions. Especially our banks would still owe 170bn real euros to the ECB.

Of course the euro itself may well depreciate (not devalue as it is a floating currency) in which case all euro deposits would suffer the same depreciation.


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## manaboutdog

What about WHEN IF we realise we have no choice but to default at some point down the line? Wouldn't it make sense then to pull out and devalue?


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## onekeano

Troy McClure said:


> Rabo rep confirmed with me funds deposited with them here would revert to Irish currency in the event of Euro breakup.



I've been buying some Rabo funds since around August which have been doing ok - I presume that these funds would remain in euros even if I'm domociled in Ireland? ie. like buying shares in any stock market the share value would remain the same?

Roy


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## Brendan Burgess

Hi Keano

These would continue to be denominated in euro. But their value would depend on where the underlying assets are. For example, if you have a fund which invests in US shares, it would be a good protection against a depreciation of the euro.

Brendan


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## onekeano

Thanks Brendan - that was what I had thought but I appreciate the clarification.

Roy


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## farmerette

onekeano said:


> I've been buying some Rabo funds since around August which have been doing ok - I presume that these funds would remain in euros even if I'm domociled in Ireland? ie. like buying shares in any stock market the share value would remain the same?
> 
> Roy


 
no ,those funds would assume a new value in line with our new currency , i was told this by a rabbodirect employee , its the very reason i wont invest in any rabbo funds , pity as i really like some of them


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## Erith

farmerette said:


> no ,those funds would assume a new value in line with our new currency , i was told this by a rabbodirect employee , its the very reason i wont invest in any rabbo funds , pity as i really like some of them




This is a confusing thread to me at least.

If you have euros held in a non-irish european bank can someone say with any certainty what the possible outcomes are if:

1) Ireland leaves the eurozone and reverts to punts but the bank's host country remains in the euro.

2) The euro ceases and both Ireland and host revert to their former native currencies.


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## G-Money

Looking for an answer on this too folks.
It seems illogical to me that you invest funds in a Rabo bank a/c, OR fund, which you buy in euros, that they would revert to a putative irish currency in the case of us leaving the euro. I would be of the opinion, that money saved in a euro area fund, stays in the euro, even if your own country reverts to the punt?!?
The only thing that can be changed is that when you withdraw these funds, they will then convert into the punt. So if you invest €100, we default and leave EMU, I then withdraw IR£200? No, yes?!?


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## minion

G-Money said:


> Looking for an answer on this too folks.
> It seems illogical to me that you invest funds in a Rabo bank a/c, OR fund, which you buy in euros, that they would revert to a putative irish currency in the case of us leaving the euro. I would be of the opinion, that money saved in a euro area fund, stays in the euro, even if your own country reverts to the punt?!?
> The only thing that can be changed is that when you withdraw these funds, they will then convert into the punt. So if you invest €100, we default and leave EMU, I then withdraw IR£200? No, yes?!?



You are correct.
The value of your shares in the fund will not devalue (assuming the Irish mess not influencing whichever fund you invest in).  When you cash in these shares your Euro will be converted to whatever currency Ireland then uses at the then exchange rate.


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## dockingtrade

WHat would happen to all Irish domiciled
Funds keeping in mind Ireland is one of the biggest fund admins in the worl ie base currency euro based in Ireland


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## dam099

To a large extent it's irrelevant what would happen as the underlying assets of the fund are not likely to be converted unless they are invested in Irish assets, if the shares were converted from euro to punt nua their value in punt nua would rise to match the value of the underlying assets. In reality the governing documents may make provision, also bear in mind many funds including Irish domiciled ones have multiple currency classes and are not necessarily denominated in Euros.


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## barrydn

So realistically, withdrawing your money in Euro now and hiding it under a pillow may be a safer bet than leaving it with an Irish Bank in the absence of depositing it abroad?


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## Guest105

from reading this and other threads it now seems inevitable that ireland is going to default. How soon is this likely to happen, next week, next month, two months???

or will this be a bit like the property bubble bust, everyone knew or thought they knew it was coming but very few people did anything about it.


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## mmquinn

*What to do???*

I am retired, living in Cork and aged 66. I have 100K in Post Office Saving Certs, 30K in a BoI managed fund and 17K in a Deposit a/c and no other assets except a mortage-free house. 
I am seriously worried about future and safety of my funds esp in case of potential nursing home / illness costs in future, and whatever about the interest, I wish to at least preserve my basic funds. 
From reading the excellent posts so far, it seems to be the general consensus that overseas in Rabo seems to be best option. What are the pros and cons of such a move, and are there other options open to me? 
Views very much appreciated as it is hard to find a financial adviser who is not compromised or biased by self interest in some way.


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## onlyonpaper

Interesting article over weekend on what would happen if Ireland defaulted and forced out of Euro. There would be a one to one conversion of Euro to New Punts. Withdrawls from accounts would be limited to small amounts to prevent run on banks. At a date soon after conversion Punt would be allowed to float and would drop 50-60% against other currencies.
Bank guarantees by Irish Govt may be worthless as money not available and Ireland would find it almost impossible to borrow.We would then have to make ends meet as a country immediately. If that is the real scenario,lets hope there is no default


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## oldnick

I'm wondering whether  such a scenario (i.e. irish euro/punt devalues by 30+%) may mean an immediate increase in property prices.
 Can you imagine how cheap Irish property would be for Brits and others ? Why would anyone buy in Newry/Derry if they could get a half-price property in Dundalk/L'kenny ? Uncle Seamus in Luton or Boston could now buy that cheap house back in the old sod ! 
And what a boost to exports -especially agricultural. And suprmarkets may actually stop importing spuds from Cyprus.

Just ruminating - I'm no economist but am I completely wrong?


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## Chris

oldnick said:


> I'm wondering whether  such a scenario (i.e. irish euro/punt devalues by 30+%) may mean an immediate increase in property prices.
> Can you imagine how cheap Irish property would be for Brits and others ? Why would anyone buy in Newry/Derry if they could get a half-price property in Dundalk/L'kenny ? Uncle Seamus in Luton or Boston could now buy that cheap house back in the old sod !
> And what a boost to exports -especially agricultural. And suprmarkets may actually stop importing spuds from Cyprus.
> 
> Just ruminating - I'm no economist but am I completely wrong?



Exports would be boosted but this would be at least offset by import costs of oil, gas, coal, electricity, electronics, fruit, cars, movies, basically anything that is not or cannot be produced here.
But default does not mean leaving the Euro!


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## conman

*Tracker + Deposit with NIB. Should I pay off Tracker?*

Hi Everyone,
I have a tracker mortgage and also substantial deposit with NIB(part of Danske Bank regulated by Danish authorities). If Ireland leaves the Euro and re-adopts the punt does anyone know will I still be stuck with a Euro mortgage but a devalued deposit? Should I therefore pay off as much of the mortgage as I can now? Given the tracker rate is so good I hadn't intended paying it off as the deposit rate is higher than the mortgage( by about 1%).
Thanks and great posts.


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## blackgeorge

*deposit*

Hi, I am becoming increasingly nervous re the situation here so thinking of options re savings which are in a PO. saving a/c. it is in joint names, my wife is an Australian and we are both Pensioners with no income other than Pensions.
Should we transfer this money to Australia and what are liabilities with Revenue
if any.


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## minion

conman said:


> Hi Everyone,
> I have a tracker mortgage and also substantial deposit with NIB(part of Danske Bank regulated by Danish authorities). If Ireland leaves the Euro and re-adopts the punt does anyone know will I still be stuck with a Euro mortgage but a devalued deposit? Should I therefore pay off as much of the mortgage as I can now? Given the tracker rate is so good I hadn't intended paying it off as the deposit rate is higher than the mortgage( by about 1%).
> Thanks and great posts.



Your contract probably is about the rate, not the currency.
it tracks the ECB rate.  So, if the currency is different you still get the ECB rate.


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## oldnick

Minion says something i hadn't thought of...
If our trackers  are based on ESB rates and we revert to the punt what happens?
The Euro interest rate is forecast to steadily rise, which is not what the PIGS want. So, if we are back on the punt with lower interest rates than the ECB Euro rate could that mean our tracker rates (based on ESB) may no longer be a good deal ?

P.S. Conman - you say you get ca. 1% more on deposit than you are paying on mortgage. But is this after DIRT ?


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## Codogly

*Conversion rates ...euro to punt*

Hi Conman ... surely NIB would have to treat both your mortgage and deposits in the same manner ... either the both remain euro or the both convert to punt...!!!
Mortgage : They loaned you euro , so you own then euro back
Deposit :  You gave them euro on deposit , so they owe you euro back.


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## Compass

Hmm! this has been bothering me recently so I wrote to RaboDirect.ie here as follows: "Hello, I have savings in a Rabo account. I understand from your information that 'We're part of the Dutch Rabobank Group.' and AAA rated etc. 
My question is, are the several thousand € , that you hold in my account - in a Netherlands bank? Are they Dutch Euros? 
What happens if Ireland is forced to leave the Eurozone and revert to the Punt with probable devaluation etc. Do our savings stay in Dutch Euros as that seems to be where we've saved them? Please clarify this important point for me. Thanks"

to which I received a reply as follows, "This is an unlikely scenario and you should note that there have been no actual steps taken to remove any of the weaker countries from the Euro. 
If this situation did arise it would depend on the legislation that would be adopted by the Irish Government to resolve the issue. 
Although we are licensed by the Dutch Central Bank we must comply fully with the codes of practice of the Central Bank of Ireland and with all relevant EU and Irish law. So if new legislation is passed by the Government to affect all banks operating in Ireland, RaboDirect could potentially fall within the remit of that legislation.
Again, this is speculation on the consequences of legislation which hasn't even been proposed, so it is hard to predict its effect."

So, I'm none the wiser - I had thought these savings were in the Netherlands and if Ireland was forced out of the Euro, would be held in Euros in Rabo group, but seemingly likely not?? There's an interesting correspondence on the matter from last year with the manager of RaboDirect on his blog but I can't post URL because of site rules here.


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## Van der Hoop

I would assume Mtgs and Deposits would be converted at the agreed rate at the same time.

With regard rabo investment funds, most of these are quoted in EUR and listed on various exchanges. You should check the ISIN number of the fund and see if it is traded on an exchange.

If for example it is a EUR fund and is traded in Luxembourg exchange, you would expect that even if we converted back to the Punt, if you redeem shares they will be converted to from EUR to punt at then current exchange rate.

A EUR based fund us valued in EUR and any positions would have to be converted to PUNT in my opinion


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## Compass

[broken link removed]

Well, now I can!!


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## conman

*NIB Tracker etc*



Codogly said:


> Hi Conman ... surely NIB would have to treat both your mortgage and deposits in the same manner ... either the both remain euro or the both convert to punt...!!!
> Mortgage : They loaned you euro , so you own then euro back
> Deposit : You gave them euro on deposit , so they owe you euro back.


 
Hi Codogly,
I'd like to think that you are correct but if Ireland goes back to the punt they could say this is now the legal tender in Ireland and convert my euro to punt but I could still owe them in euro - don't know but it has me concerned. 
Conman


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## conman

Hi Minion,
My concern is not about the rate but having my euro deposit devalued.
Conman


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## conman

Hi Oldnick,
The deposit rate is 3% and the tracker is under 2% - after DIRT I'm still ahead.
Conman


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## Greensquare

I am a Rabo Direct (Ireland) account holder, and I queried them on the event of Ireland leaving the Euro, what would happen to my savings. Would tehy stay in Euor's or would they be converted to punts.

This is the responce I got:
_"__Thank you for your email. This is an unlikely scenario and you should note that there have been no actual steps taken to remove any of the weaker countries from the Euro. 

If this situation did arise it would depend on the legislation that would be adopted by the Irish Government to resolve the issue. 

Although we are licensed by the Dutch Central Bank we must comply fully with the codes of practice of the Central Bank of Ireland and with all relevant EU and Irish law. So if new legislation is passed by the Government to affect all banks operating in Ireland, RaboDirect could potentially fall within the remit of that legislation.

Again, this is speculation on the consequences of legislation which hasn't even been proposed, so it is hard to predict its effect."_

Going by this, it basiclaly depends on what legislation the Irish Government decide to come up with, in the event of Ireland leaving the Euro. In other words, in the unlikely event that Irleand leaves the Euro, as its unchartered waters, nobody knows what will happen.


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## cork

*Re*

ButIn a worst case sinario- If you got your to issue you a bank draft in euros. - you could then bring this draft over to a German bank.

Couuld this be an option to safegaurd your deposits?


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## conman

*Euro etc*

Hi Cork,

That's an good idea - only thing is this could all happen over a weekend and when you go to withdraw  your money they may say sorry we're converting it to Newpunts.

Regards

C


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## sole

*rabo - euro break up*

I am confused on the Rabo business. In event of euro break up is there a  difference in having a deposit with rabo or having an investment in one  of their Funds. In each case do I get back Euro or "Punt". 
If I get back "Punts" is this simply a name change at one to one or is  it a devalued "Punt" leaving me with say half what I invested in Euro.
Will there be any difference between a deposit in an Irish bank and a deposit in Rabo in event of break up.
Any help? ?


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## sole

In case of the break up of Euro - What about a deposit in a Swiss bank? Would this be as good as Germany? Are there any problems about getting deposit in Switzerland.


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## Lightning

sole said:


> I am confused on the Rabo business. In event of euro break up is there a  difference in having a deposit with rabo or having an investment in one  of their Funds. In each case do I get back Euro or "Punt".
> If I get back "Punts" is this simply a name change at one to one or is  it a devalued "Punt" leaving me with say half what I invested in Euro.
> Will there be any difference between a deposit in an Irish bank and a deposit in Rabo in event of break up.
> Any help? ?



Deposits held in any bank, that is governed by the laws of Ireland, are likely to have their EUR deposits subject to a conversion to new currency, including Rabobank. That is, if the eventuality ever arises.



sole said:


> In case of the break up of Euro - What about a deposit in a Swiss bank? Would this be as good as Germany? Are there any problems about getting deposit in Switzerland.



A deposit in Switerland would, most likely, be held in CHF. Hence, you open yourself up to FX risk. Also, it is not simple opening an account in Switzerland. 

What are you trying to achieve? Protection against the possibility of EUR currency breakup?


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## pilotsnipes

Just looking for speculation here too.

I have a EURO account with Barclays in Newry. What do we reckon UK banks would do with accounts in euros if the euro were to "disappear".

I know nobody knows, but I'm happy for wild guesses too


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## frankmac

CiaranT said:


> Deposits held in any bank, that is governed by the laws of Ireland, are likely to have their EUR deposits subject to a conversion to new currency, including Rabobank. That is, if the eventuality ever arises.


 
Ciaran Im sorry to be asking what may appear as a stupid question, but the reality is that a lot of people like myself dont have a clue and depend on people like yourself for advice clarifications and explanations.

So here goes. Does the above statement mean that if Ireland reverted to the Punt, and say the punt was valued at 50c to the euro, that every euro on deposit would be converted to two punts?


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## PolkaDot

@frankmac, I think it would mean every €1 would become 50p in the new currency. e.g. if you had €10,000 on deposit, this would become £5,000 punt nua.

It's the same thing that happens when you get married! You suddenly lose 50% of your wealth!


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## Lightning

frankmac said:


> Ciaran Im sorry to be asking what may appear as a stupid question, but the reality is that a lot of people like myself dont have a clue and depend on people like yourself for advice clarifications and explanations.
> 
> So here goes. Does the above statement mean that if Ireland reverted to the Punt, and say the punt was valued at 50c to the euro, that every euro on deposit would be converted to two punts?



No worries. 

If hypothetically the conversion rate is 1 EUR = 2 units of a new Irish currency then yes you will get 2 units of the new currency. The problem is the new currency is likely to devalue against a basket of currencies, causing import prices to soar and then high inflation. That is if the EUR ever does break up.


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## sole

Did some suggest that there there would be a difference between having money in a Rabo Fund and a Deposit in the event ok the euro break up. If I have say money in BFG World Mining would that turn into "Punt Nua" as well as the deposit.


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## Chris

sole said:


> Did some suggest that there there would be a difference between having money in a Rabo Fund and a Deposit in the event ok the euro break up. If I have say money in BFG World Mining would that turn into "Punt Nua" as well as the deposit.



The fund price can be quoted in any currency, the funds gets its value from the underlying assets which can be quoted in any number of currencies.


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## frankmac

CiaranT said:


> No worries.
> 
> If hypothetically the conversion rate is 1 EUR = 2 units of a new Irish currency then yes you will get 2 units of the new currency. The problem is the new currency is likely to devalue against a basket of currencies, causing import prices to soar and then high inflation. That is if the EUR ever does break up.


 
Thanks Ciaran. Thats what I thought ok.


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## regicide

Chris said:


> The dud price can be quoted in any currency, the funds gets its value from the underlying assets which can be quoted in any number of currencies.



From the FAQ on the rabodirect.ie website:

What would happen to my investments at RaboDirect if Ireland decided to stop operating within the Euro currency?
	The majority of funds offered by RaboDirect.ie have the Euro as  their base currency, or have a Euro or Euro hedged fund alternative if  the base currency is in US Dollars.
If Ireland decided not to  operate within the Euro, and for example, reintroduced the Irish Pound,  it would probably result in a depreciation of the currency against the  Euro.
That means your Euro investments are likely to be in a  stronger currency than the Irish Pound and your investment would remain  in Euros until you sold your funds. At this point the value of your  investments would be converted from Euro to the new currency.


Reg


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## adox

I have practically all of my savings on deposit with Rabo and I have been watching the situation over the last few weeks with interest.

Obviously there is no clear cut answer on what will happen but I`ve decided to withdraw 50% of the funds and pay it off my mortgage. If we do revert to the punt at least my savings wont take such a big hit, if it follows that there is a devaluation.

I`m going to leave the rest on deposit with Rabo until the new year and see where we are then.


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## tommy78

regicide said:


> From the FAQ on the rabodirect.ie website:
> 
> What would happen to my investments at RaboDirect if Ireland decided to stop operating within the Euro currency?
> The majority of funds offered by RaboDirect.ie have the Euro as  their base currency, or have a Euro or Euro hedged fund alternative if  the base currency is in US Dollars.
> If Ireland decided not to  operate within the Euro, and for example, reintroduced the Irish Pound,  it would probably result in a depreciation of the currency against the  Euro.
> That means your Euro investments are likely to be in a  stronger currency than the Irish Pound and your investment would remain  in Euros until you sold your funds. At this point the value of your  investments would be converted from Euro to the new currency.
> 
> 
> Reg



Would a strategy be that if we were reverting to the Punt Nua , to buy Rabo funds with your savings in Rabo before devaluation and then when the dust has settled you sell those funds to hopefully maintain those current levels of savings ?

Apologies if unclear.


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## Chris

tommy78 said:


> Would a strategy be that if we were reverting to the Punt Nua , to buy Rabo funds with your savings in Rabo before devaluation and then when the dust has settled you sell those funds to hopefully maintain those current levels of savings ?
> 
> Apologies if unclear.



Not unclear at all. 

The question would be what capital restrictions would be put in place. I think it could be a bit more difficult to put those restrictions in place with a foreign bank. Nevertheless, the strategy is one I have put in place, as the little money I have left in Ireland is in Rabo for that very reason.


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## ryaner

tommy78 said:


> Would a strategy be that if we were reverting to the Punt Nua , to buy Rabo funds with your savings in Rabo before devaluation and then when the dust has settled you sell those funds to hopefully maintain those current levels of savings ?
> 
> Apologies if unclear.



Would that not be liable for capital gains tax, since technically you are making money?


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## smndly

tommy78 said:


> Would a strategy be that if we were reverting to the Punt Nua , to buy Rabo funds with your savings in Rabo before devaluation and then when the dust has settled you sell those funds to hopefully maintain those current levels of savings ?
> 
> Apologies if unclear.



Wouldn't devaluation happen over night though? The euro you have in your rabo deposit account would become punts before you have a chance to buy funds. Otherwise everyone would run to their banks to take out their euro before it becomes punts.


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## tommy78

smndly said:


> Wouldn't devaluation happen over night though? The euro you have in your rabo deposit account would become punts before you have a chance to buy funds. Otherwise everyone would run to their banks to take out their euro before it becomes punts.



Well if you bought them now you would have a chance to buy those funds!


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## WinnieP

there was an question about this on the rabo site and the answer Rabo gave was they would have to comply with the legal situation in the relevant state, i.e if Ireland uses punts, accounts would have to go to punts. they did put in the disclaimer that no one really knows what the legal situation would be... i can;t find the thread anymore on their site.. I read it there about a year ago...  Rabo also said they wouldn;t allow any Irish customers setup a dutch account but I know some people on here have managed that so who knows...


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## Troy McClure

regicide said:


> From the FAQ on the rabodirect.ie website:
> 
> What would happen to my investments at RaboDirect if Ireland decided to stop operating within the Euro currency?
> The majority of funds offered by RaboDirect.ie have the Euro as their base currency, or have a Euro or Euro hedged fund alternative if the base currency is in US Dollars.
> If Ireland decided not to operate within the Euro, and for example, reintroduced the Irish Pound, it would probably result in a depreciation of the currency against the Euro.
> That means your Euro investments are likely to be in a stronger currency than the Irish Pound and your investment would remain in Euros until you sold your funds. At this point the value of your investments would be converted from Euro to the new currency.
> Reg


 
Thats interesting. It seems you could buy a rabo fund. As this fund has nothing to do with Ireland you would have to decide to exit the fund in your own time. The day you do that would dictate the exchange rate you recieve to any new domestic currency. This sounds like a form of protection, but thats not putting any though on the effects of a shock event of a Euro breakup on the unit value of such funds. It could out of the frying pan into the fire..


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## tommy78

Troy McClure said:


> Thats interesting. It seems you could buy a rabo fund. As this fund has nothing to do with Ireland you would have to decide to exit the fund in your own time. The day you do that would dictate the exchange rate you recieve to any new domestic currency. This sounds like a form of protection, but thats not putting any though on the effects of a shock event of a Euro breakup on the unit value of such funds. It could out of the frying pan into the fire..


 
Yes I would be worried that the fund value could be wiped out as a result of a Euro breakup.

Anybody know what type of fund would be the safest in this scenario ?


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## RMB

*Saving EURO deposits in RABO Direct*



Troy McClure said:


> Rabo rep confirmed with me funds deposited with them here would revert to Irish currency in the event of Euro breakup.


So this means the best place if one has a few Euros in savings is to keep them in a shoe box or mattress? Or risk losing the value of your money once we are back to Punts.


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## penury

RMB said:


> So this means the best place if one has a few Euros in savings is to keep them in a shoe box or mattress?



That has been my thought all along, whatever bit of free money that I have

In the event I had several thousands of spare change, I would likely take some of my cash in euros and put it under the mattress so to speak - that being a safe in the wall or the floor.

The rest I would probably look at converting into Swiss francs, again that would be in cash - under the mattress.

Doing it this way I would lose any investment interest gain that may keep up with inflation, however, its in cash.

For everyday living expenses, I would use only the required amount of money that I need in local currency - anything left over, as above

The other thought is to convert all spare cash into loose diamonds with an accompanying certificate. For me, I would not convert my cash today into gold or gold certificates.


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