EUROS in offshore accounts

[celebtastic]

i believe some of the members are missing something important. Holding euros in a multi-currency account with a non-eurozone bank appears to me the same as holding euro in a standard single-currency account. The question is: What will happen to these euro when the euro breaks up? Will euros in an account with a singapore-, hong kong, swiss bank be changed into sgd, hkd, or sfr or what? If the break-up happens it will heppen over a weekend. Banks and atms will probably be closed for a day or two. When then reopen, it will not help to have a multi-currency account in singapore or whereever because you will not be able to choose the currency of your preference.

+1

You may want to look at keeping your holdings outside the euro (and eurozone banks) altogether until this current storm runs its course.

There is always a risk with this sort of thing - what is the euro were to suddenly rapidly appreciate against the USD, GBP, or whatever? Against that you need to balance the risk of the euro continuing to fall in value, or even breaking up completely.

 

[potnoodler]

Sounds like the answer to Ireland's problem , I know we've no idea where it would lead too, but it our banking debt is turned to punts which inflates away as well as the negative equity that a lot Of people are saddled. With
Our exports get more competitive and imports more expensive
So maybe it is time for everyone to start purchasing dollars and sterling etc and buying a safe

 

[celebtastic]

Sounds like the answer to Ireland's problem , I know we've no idea where it would lead too, but it our banking debt is turned to punts which inflates away as well as the negative equity that a lot Of people are saddled. With
Our exports get more competitive and imports more expensive

There was a good article in the SIndo last week on just that point.

 

[Chris]

Fair play Potnoodler for pointing out the rising cost of imports, that makes you far more intelligent than the majority of economic "experts" and commentators in the Media. What most people don't realise is the extent of price increases in Ireland due to a devaluation. Everything would go up in price because oil and gas would cost more, along with bananas, oranges, computers, cars, machinery, agricultural equipment, building equipment, coal, medical equipment, plastics, chemicals, planes, medications.
It would be a total disaster!