Taking Out Foreign Currency

[Beef Oven!]

Worst case scenario is that one could be down an entire currency...

What do you mean? I don’t understand.

[Dave2002]

What do you mean? I don’t understand.

Maybe hinting at something like this - https://www.goodreads.com/author_blo...rrows-of-money

[Cockney Sparrow]

Ah the inflation in Germany in the 1920's. Family history - great grandparents of my children worked there, then, for a US company and were paid in dollars. Amongst other things they had 3 or 4 violins made (helping out their friends/contacts) and bought a Bluthner piano - upright, light coloured rosewood . One of the 2 extant violins (that we know about) is in the custody of my daughter and the piano resides with us too.

[Richard Barrett]

Worse case scenario is that one could be down a latte and Danish pastry!

Quite.

Although I was paid for something last week in Australian dollars into my UK account and I was a bit taken aback at how little it translated into in pounds.

[ahinton]

Quite.

Although I was paid for something last week in Australian dollars into my UK account and I was a bit taken aback at how little it translated into in pounds.

Well, at least next time you receive such a payment into that account it should translate into proportionately more of them! How long the pound's slide will continue is, of course, as uncertain as how far it will continue to slide.

[french frank]

Well, at least next time you receive such a payment into that account it should translate into proportionately more of them! How long the pound's slide will continue is, of course, as uncertain as how far it will continue to slide.

We're in a 'phoney war' type of period which is likely to last for a few years. The fluctuations are all due at the moment to traders trying to second guess what's likely to happen. It will stabilise, higher or lower, when actual results start coming in, based on the actual situation, rather than what it might be. The fact that the IMF considers the pound now undervalued is - I would have thought - unlikely to increase market confidence in the short term.

If you're only away for four days, just calculate how much you expect/hope to spend, add on 20%, and that's as good a figure as any!

[Beef Oven!]

We're in a 'phoney war' type of period which is likely to last for a few years. The fluctuations are all due at the moment to traders trying to second guess what's likely to happen. It will stabilise, higher or lower, when actual results start coming in, based on the actual situation, rather than what it might be. The fact that the IMF considers the pound now undervalued is - I would have thought - unlikely to increase market confidence in the short term.

If you're only away for four days, just calculate how much you expect/hope to spend, add on 20%, and that's as good a figure as any!

It’s a shame that anyone (the markets et al, I don’t mean you) should even listen to the IMF anymore.

[ahinton]

We're in a 'phoney war' type of period which is likely to last for a few years. The fluctuations are all due at the moment to traders trying to second guess what's likely to happen. It will stabilise, higher or lower, when actual results start coming in, based on the actual situation, rather than what it might be. The fact that the IMF considers the pound now undervalued is - I would have thought - unlikely to increase market confidence in the short term.

If you're only away for four days, just calculate how much you expect/hope to spend, add on 20%, and that's as good a figure as any!

Whilst I think that you're broadly correct here, it could well be that the length and impact of that "war" might be dependent in part upon whether UK's leaving EU and the particular manner in which it does so (if indeed it does leave) encourages other EU nations, especially Eurozone ones, to try to follow suit with the possible outcome of the disintegration of that Eurozone, even if not necessarily of EU itself; likewise, if this great and swift new trade deal now noisily being bandied about by Trump (does he ever do anything pp?)turns out to be between UK and an US whose economy will continue to fall apart under and because of his presidency, such instability and uncertainty in the currency markets will likely become greater still.

[french frank]

It’s a shame that anyone (the markets et al, I don’t mean you) should even listen to the IMF anymore.

Well, looking at other sources, it does seem to be a widely-held view. But in one way I suppose it becomes a self-fulfilling prophecy. But if you calculate how much you stand to lose (worst case) you should find you have a pleasant surprise. Which is why I say add on 20%. Make it 25%, if you like. Just don't make it so much that you decide not to go … :-)

[Beef Oven!]

Well, looking at other sources, it does seem to be a widely-held view. But in one way I suppose it becomes a self-fulfilling prophecy. But if you calculate how much you stand to lose (worst case) you should find you have a pleasant surprise. Which is why I say add on 20%. Make it 25%, if you like. Just don't make it so much that you decide not to go … :-)

I wonder what the Bank of England would say?

Seriously, your suggestion is in indeed what I’ve always done down the years, and it’s always worked out well for me. (Blimey, does this make us experts!?).

[ahinton]

I wonder what the Bank of England would say?

Seriously, your suggestion is in indeed what I’ve always done down the years, and it’s always worked out well for me. (Blimey, does this make us experts!?).

The problem is more for those UK citizens living in Eurozone countries on fixed sterling incomes than for those from UK who visit such countries for relatively short periods.

[Nick Armstrong]

This was all about £200 over 4 days!!!???

Worse case scenario is that one could be down a latte and Danish pastry!

[Dave2002]

The problem is more for those UK citizens living in Eurozone countries on fixed sterling incomes than for those from UK who visit such countries for relatively short periods.

That may indeed be the situation. Also, a 20% or even a 10% deviation could have a significantly greater effect on people who have fixed outgoings, and relatively little surplus or "disposable" income. Example (in pounds) - compare scenario 1 with scenario 2.

Scenario 1 - monthly outgoings £1800 of which £1500 is fixed and can't be adjusted (e.g mortgage, council tax, committed outgoings). Often this part will increase. Income of £2000. Disposable income £200 per month. Reduction of income to £1600 - equivalent to a 0.8 "devaluation". Now there is no disposable income - so urgent restructuring is called for.

Scenario 2 - monthly outgoings £1800 of which £400 is fixed and can't be adjusted (no or low mortgage, council tax, not many other commitments). Same income scenario - the disposable income still £200 per month - though in reality there is a lot of slack, so easy to adjust. A cut back to £1500 for someone who doesn't have significant and "must be paid" outgoings every month might not be too much of a problem. OK - so no more expensive meals out, or holidays (weekend breaks) or large CD boxes, but no need to sell houses, cars etc.

A further problem, if there are many people in the Scenario 1 category - eventually some or most of these will try to recover their financial position. If there are few jobs they can't do that by working, as employers will desperately be trying to cut back too. If they try to sell goods/property etc., they will discover that that doesn't work, as very few people will wish to buy, as many people will also be tryiing to recover their finances. So indeed it can be the case that what sounds like small percentage reduciton which will only (initially) affect relatively few people will eventually have much greater effect on significantly large groups of people.

[french frank]

Seriously, your suggestion is in indeed what I’ve always done down the years, and it’s always worked out well for me. (Blimey, does this make us experts!?).

I must advise that the pound can go down as well as up, and mine was not financial advice but a psychological ploy.

[Richard Barrett]

Seriously, your suggestion is in indeed what I’ve always done down the years, and it’s always worked out well for me. (Blimey, does this make us experts!?).

Me too. Plus: the first restaurant you eat at in a place you've never visited before is going to be overpriced and not that great. Saves a lot disappointment to bear that in mind.