would become IR£100k overnight which would then devalue by anything from 30-60% relative to other major currencies.
Gordon "overnight"? Can you describe the train of events which would enable this to happen overnight without anyone having an inkling it was coming?It is impossible to be definitive, but in all probability your €100k would become IR£100k overnight which would then devalue by anything from 30-60% relative to other major currencies.
Technically I think the old punt (pre 1979) was "independent". However the powers that be kept it linked at the hip to sterling and the populace had complete confidence in that parity linkage.We have never had our own independent currency, so I doubt we will have one in the future.
It is impossible to be definitive, but in all probability your €100k would become IR£100k overnight which would then devalue by anything from 30-60% relative to other major currencies.
Swiss Franc perhaps ?
Hi all
Under the NTMA, the repayment of state saving bonds is a direct obligation of the Irish Government. But, say you have 100K of prize bonds, what would happen if the EUR collapses?
Thanks
Yes and no to these points. At the time of the first McWilliams scare there was a possibility of unilateral Irexit from the euro. There would undoubtedly have been some advance warning - you simply cannot print billions of punts secretly despite Minister Ross' assertion otherwise. So I always perceived that there would be time to jump ship from Irish bank euro deposits to, say, German bank deposits. State savings might not have been so easily exited in time. I don't think thoughts like this are relevant to a consensual break up of the euro which would happen on a very protracted timescale.Prize Bonds have the same level of security as Irish Govt Treasury Bills, and ALL other financial products that form part of the national debt. if you have money invested in the State in products like Prize Bonds then it is in my opinion as safe there as anywhere else, a revaluation/ Euro exit will hurt all savers no matter where you stash it.
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